IPO comprises ₹1,500 crore fresh issue and ₹1,500 crore offer for sale
Svatantra Microfin Limited, an inclusion-focused non-banking financial company, has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an initial public offering aggregating ₹3,000 crore.
The IPO comprises a fresh issue of ₹1,500 crore and an offer for sale of ₹1,500 crore. Proceeds from the fresh issue will be used to augment the company’s Tier I capital base to meet future capital requirements, including onward lending to support business and asset growth.
Svatantra Microfin provides credit to individuals and small entrepreneurs, with its portfolio primarily comprising microfinance loans. Its secured lending offerings, including affordable housing finance and loans against property, are offered through subsidiary Svatantra Micro Housing Finance Corporation Limited.
Led by Chairperson and Non-Executive Director Ananya Birla, Svatantra Microfin was the first institution to receive the NBFC-MFI licence introduced by the Reserve Bank of India in 2011.
As of March 31, 2026, the company was the second-largest NBFC-MFI in India by microfinance AUM. Its MFI AUM grew at a CAGR of 20.87% from ₹14,437.87 crore in FY24 to ₹21,093.22 crore in FY26. Its share of India’s total MFI AUM increased from 3.26% to 6.37% during the same period.
The company had 2,123 branches across 20 states and 394 districts, supported by 24,594 employees, including 15,575 field officers, serving 4.27 million active microfinance borrowers.
Svatantra Microfin reported Gross Stage 3 ratios of 1.19% and 2.24% in FY26 and FY25, respectively, the lowest among its MFI peers.
Axis Capital, Avendus Capital, IIFL Capital Services, Kotak Mahindra Capital and SBI Capital Markets are the Book Running Lead Managers to the issue.
