A) Arohan Financial is a leading NBFC-MFI with operations in financially under-penetrated Low Income States of India. They provide income generating loans and other financial inclusion related products to customers who have limited or no access to financial services.
B) Started in the year 2006, Arohan Financial is the largest NBFC-MFI in Eastern India and the fifth largest NBFC-MFI in India based on Gross Loan Portfolio as of September 30, 2020. Arohan Financial has seasoned business model incorporating well-established risk management framework, loan approval processes and recovery drives.
C) As of September 30, 2020, its Gross Loan Portfolio (“GLP”) is ~4800 Crores. In the last 3 years i.e. 2017 to 2020, they were having the second highest loan portfolio CAGR of 68.00% among the top five NBFC-MFIs in India.
D) Arohan Financial microfinance business’ branch network consisted of 710 branches in 11 states and MSME lending business’ branch network consisted of 10 branches in eight states.
E) Under Microfinance portfolio, the company has 97% women customers to whom they have given loans.
F) The promoters of the company are Aavishkaar Venture Management Services Private Limited (“AVMS”) and Intellectual Capital Advisory Services Private Limited (“I-Cap”). Other institutional investors include Tano India Private Equity Fund II, Maj Invest Financial Inclusion Fund II K/S, Michael & 137 Susan Dell Foundation, TR Capital III Mauritius, ASK Financial Holding Private Limited and Kiran Vyapar Limited.
G) In FY20, Arohan Financial has Revenue of 934 Crores, PAT of 126 Crores and Gross NPA of 2.47%.
H) Book value as on 30.09.2020 = 93 and EPS = 12.07. So, accordingly, the share at Rs.250 is available at P/E of 20x and P/B of 2.66x, which is very reasonable.
|Total Available Shares:||1000|
|Face Value:||₹ 10 Per Equity Share|
|Lot Size:||50 Shares|
|Current Unlisted Share Price:||₹ Best In Industry Per Equity Share|
|Name of shareholder||No. of Equity Shares||% of Equity|
|ASK Financial Holdings Pvt. Ltd||5530329||4.6|
|Particulars (in Crores)||FY20||FY19||FY18|