Aug 14: Ananya Birla led Svatantra Microfin Limited, an inclusion-focused non-banking financial company enabling financial independence for households and empowering grassroots entrepreneurs within the Indian economy, has filed its DRHP with SEBI for an IPO.
The IPO comprises a fresh issue of ₹1,500 crore and an offer for sale of ₹1,500 crore, aggregating to a total Issue size of ₹3,000 crore.
The proceeds from the fresh issue are to be utilised towards augmenting the Company’s Tier I capital base to meet its future capital requirements, including onward lending, arising out of the growth and expansion of its business and assets.
Svatantra Microfin Limited enables financial inclusion by providing access to credit for individuals and small entrepreneurs, helping strengthen livelihoods and support economic participation across communities. Its portfolio primarily comprises microfinance loans, complemented by secured lending products, viz. affordable housing finance, including loans against property, offered through its Subsidiary, Svatantra Micro Housing Finance Corporation Limited.
Svatantra Microfin Limited is led by Ananya Birla, Chairperson and Non-Executive Director, who represents the next generation of the Aditya Birla Group’s legacy. The Company was the first institution to receive the NBFC-MFI license, which was introduced by the Reserve Bank of India in 2011.
Svatantra Microfin Limited is the second-largest non-banking financial company – microfinance institution in India as of March 31, 2026, 2025 and 2024 in terms of microfinance assets under management . Svatantra Microfin was the fastest growing NBFC-MFI in India over the last three Fiscals, with AUM - MFI growing at a CAGR of 20.87% from ₹ 144,378.72 million as of March 31, 2024 to ₹ 210,932.22 million as of March 31, 2026, among the peers. Its share of the total AUM - MFI in India increased from 3.26% as of March 31, 2024 to 6.37% as of March 31, 2026, reflecting the Company's resilient growth through economic cycles. As of March 31, 2026, Svatantra Microfin is also the largest NBFC-MFI in Bihar and Uttar Pradesh, based on AUM - MFI.
A key pillar of the company's microfinance risk management strategy is diversification across geographies. For instance, no single district contributed more than 2.74%, 2.60% and 2.35% of Company ’s AUM – MFI as of March 31, 2026, 2025 and 2024, respectively, while no single state contributed more than 23.02%, 21.66% and 20.72% of Company’s AUM – MFI as of the same dates. Svatantra Microfin limited reported the lowest Gross Stage 3 Ratio among the MFI Peers in Fiscals 2025 and 2026, at 2.24% and 1.19%, respectively. Its performance has been supported by geographic diversification, disciplined underwriting, borrower-centric product offerings and collection mechanisms.
Further, the amalgamation of Chaitanya India Fin Credit Private Limited into Svatantra Microfin Limited, with effect from March 21, 2026, complemented its existing geographic presence, particularly given its established presence in southern India, and further strengthened its pan-India presence while maintaining a diversified geographic portfolio.
Svatantra Microfin Limited has remained resilient through the period of sectoral stress compared to MFI Peers, with our Company’s return on average AUM being the highest among the MFI Peers in Fiscals 2025 and 2026, at 2.90% and 3.57%, respectively. Through Fiscals 2025 and 2026, years of elevated credit costs and asset quality stress across the microfinance sector, the company delivered the highest return on equity at 13.66% and 15.00%, respectively.
As of March 31, 2026, Its microfinance operations are supported by a diversified geographic footprint and deep district-level penetration, with a network of 2,123 branches across 20 states and 394 districts across India. This network is complemented by an on-ground presence comprising 24,594 employees, including 15,575 field officers, which has enabled Svatantra Microfin to serve 4,266,316 active borrowers as of March 31, 2026 in its microfinance business.
Axis Capital Limited, Avendus Capital Private Limited, IIFL Capital Services Limited, Kotak Mahindra Capital Company Limited and SBI Capital Markets Limited are the Book Running Lead Managers.
