Svatantra Microfin IPO: ₹3,000 Cr Plan to Boost Capital

Ananya Birla-led Svatantra Microfin Limited has submitted its Draft Red Herring Prospectus (DRHP) to SEBI, targeting a ₹3,000 crore Initial Public Offering (IPO).

The proposed IPO includes a fresh issue of ₹1,500 crore and an Offer For Sale (OFS) of ₹1,500 crore. Proceeds from the fresh issue are earmarked to strengthen the company’s Tier I capital base, address future capital needs, and support onward lending for business expansion.

IPO Details & Capital Intent

• Total IPO Size: ₹3,000 crore
• Fresh Issue: ₹1,500 crore
• Offer For Sale (OFS): ₹1,500 crore

Svatantra Microfin, which secured its NBFC-MFI license from the Reserve Bank of India in 2011, aims to facilitate financial independence. The company primarily offers microfinance loans alongside secured lending products via its subsidiary, Svatantra Micro Housing Finance Corporation Limited.

Market Position & Growth

As of March 31, 2026, Svatantra Microfin stands as India’s second-largest non-banking financial company – microfinance institution (NBFC-MFI) by microfinance Assets Under Management (AUM – MFI).

• AUM – MFI (March 31, 2024): ₹144,378.72 million
• AUM – MFI (March 31, 2026): ₹210,932.22 million
• CAGR (last three fiscal years): 20.87%
• Share of total AUM – MFI in India: Increased from 3.26% to 6.37% over the same period.

The company is also the largest NBFC-MFI in Bihar and Uttar Pradesh by AUM – MFI as of March 31, 2026. Its strategy includes geographic diversification to manage microfinance risk.

Financial Resilience & Reach

Svatantra Microfin demonstrated strong financial health, reporting the lowest Gross Stage 3 Ratio among MFI peers in Fiscals 2025 and 2026.

• Gross Stage 3 Ratio (Fiscals 2025): 2.24%
• Gross Stage 3 Ratio (Fiscals 2026): 1.19%
• Return on Average AUM (RoAAUM) (Fiscals 2025): 2.90%
• Return on Average AUM (RoAAUM) (Fiscals 2026): 3.57%
• Return on Equity (ROE) (Fiscals 2025): 13.66%
• Return on Equity (ROE) (Fiscals 2026): 15.00%

The amalgamation of Chaitanya India Fin Credit Private Limited on March 21, 2026, expanded its presence, especially in southern India. The company’s microfinance operations are supported by 2,123 branches across 20 states and 394 districts, serving 4,266,316 active borrowers.

Book Running Lead Managers for the IPO include Axis Capital Limited, Avendus Capital Private Limited, IIFL Capital Services Limited, and Kotak Mahindra Capital.