Svatantra Microfin IPO

About Svatantra Microfin IPO

The public issue of Svatantra Microfin Limited, a mainboard IPO, will open on TBA and close on TBA. The basis of allotment is expected to be finalised on TBA. Shares will be credited to the eligible investors' demat accounts on TBA, while refunds, if any, will be initiated on TBA. The listing of shares is scheduled for TBA.

The equity shares offered through the IPO are proposed to be listed on both the BSE and the NSE.

The IPO comprises a fresh issue and an offer for sale. The fresh issue consists of equity shares aggregating up to ₹1,500 crore. The offer for sale also comprises equity shares up to ₹1,500 crore.

Svatantra Microfin Limited's IPO price band is fixed at ₹TBA to ₹TBA per share. The lot size for an application is TBA shares. The minimum investment required for retail investors is ₹TBA (TBA shares). The minimum investment required for HNI investors is ₹TBA. The price band and minimum bid lot will be announced closer to the IPO opening date.

Svatantra Microfin Limited is an inclusion-focused non-banking financial company providing microfinance loans to low-income households and small entrepreneurs across India. Through its wholly owned subsidiary, Svatantra Micro Housing Finance Corporation Limited, the company also provides affordable housing finance and loans against property.

Objectives Of Svatantra Microfin IPO

• Augmenting the company's Tier-I capital base to meet future capital requirements, including onward lending arising from the growth and expansion of its business and assets.
  
• A portion of the proceeds from the Fresh Issue will be used towards meeting the Offer Expenses
  

Industry Outlook

India's financial inclusion base continues to widen. Around 381.5 million people are in the 15-29 age group, and nearly 90% of the population is below 60, giving financial services providers a large addressable base. The RBI's Financial Inclusion Index rose from 64.2 in FY24 to 67.0 in FY25, and account ownership among adults reached 89% in 2024 against 53% in 2014, although rural and semi-urban areas remain comparatively underserved.

Overall credit is projected to grow at a CAGR of 13-14% through FY29 to reach ₹320-330 lakh crore, with NBFC credit growing faster at 17-18% on the back of technology adoption and rising demand for retail financing.

Microfinance, however, has been through a sharp correction rather than a period of steady growth. Following the post-pandemic expansion of FY21-FY24, borrower overleveraging, the MFIN guardrails introduced from April 2025 and a funding squeeze pushed the sector into six consecutive quarters of contraction. Industry AUM stood at approximately ₹3,310 billion in FY26, down from roughly ₹4,430 billion in FY24, and MFIN estimates that several million borrowers exited formal credit over the period. Signs of stabilisation emerged in the final quarter of FY26, with sequential portfolio growth returning and portfolio-at-risk metrics improving as lenders worked through write-offs. Improving collection efficiency and tighter underwriting discipline are expected to support a gradual recovery, though the pace remains uncertain.

About Svatantra Microfin

Svatantra Microfin Limited is an inclusion-focused NBFC providing credit to individuals and small entrepreneurs, primarily through microfinance loans. It also offers affordable housing finance and loans against property through its wholly owned subsidiary, Svatantra Micro Housing Finance Corporation Limited.

As of 31 March 2026, consolidated AUM stood at ₹23,817.78 crore, of which microfinance accounted for 88.56% and secured lending products for the remaining 11.44%. Consolidated operations spanned 2,253 branches across 23 states and union territories and 446 districts. The microfinance business alone operated 2,123 branches across 20 states and 394 districts, supported by 24,594 employees, including 15,575 field officers, and served approximately 4.27 million active microfinance borrowers.

The company was the second-largest Non-Banking Financial Company–Micro Finance Institution (NBFC-MFI) in India by MFI AUM as of 31 March 2026 and the largest NBFC-MFI in Bihar and Uttar Pradesh. Its MFI AUM grew at a 20.87% CAGR between FY24 and FY26, while its share of India's MFI AUM increased from 3.26% to 6.37%.

The amalgamation of Chaitanya India Fin Credit with Svatantra Microfin, effective 21 March 2026, strengthened the company's presence in southern India and extended its pan-India footprint. The reported three-year consolidated AUM CAGR of 38.18% should be read in that light.

Strengths Of Svatantra Microfin

• India’s second-largest and fastest-growing NBFC-MFI, with MFI AUM growing at a 20.87% CAGR between FY24 and FY26.
• Strong promoter legacy and experienced leadership, supported by Ananya Birla and the strategic guidance and lineage of the Aditya Birla Group.
• Geographically diversified microfinance network, with 2,123 branches across 20 states and 394 districts as of 31 March 2026.
• Strong asset quality and risk management, with a Gross Stage 3 Ratio of 1.19% in FY26 for the MFI business, the lowest among its MFI peers.
• Technology-enabled operating model, combining digital processes with field execution across sourcing, underwriting, disbursals, collections and grievance redressal.
• Resilient financial performance, with the highest RoAAUM and RoE among MFI peers during FY25 and FY26.

Risks Of Svatantra Microfin

• The company serves borrowers with limited credit histories and informal incomes, which may increase credit risk and affect collections.
• Higher NPAs or provisions could affect financial performance, with an overall Gross Stage 3 Ratio at 1.37% in FY26.
• Interest income contributed 90.82% of total revenue from operations in FY26, exposing earnings to changes in interest rates.
• Disruptions in access to debt or equity capital could affect the company's ability to fund business growth and lending activities.
• The company had total borrowings of ₹18,613.26 crore as of 31 March 2026, creating significant debt-servicing obligations.
• Changes in loan tenors could create asset-liability mismatches and affect the company's liquidity and profitability.
• A downgrade in credit ratings could increase borrowing costs and restrict the company's access to financing.
• Changes in RBI or NHB regulations, or non-compliance with applicable requirements, could adversely affect the company's operations.

Anchor Investor Bidding Date

TBA

Registrar Details
MUFG Intime India Private Limited
E-mail: svatantra.ipo@in.mpms.mufg.com
Telephone: +91 810 811 4949

Book Running Lead Manager

• Axis Capital Limited
  
• Avendus Capital Private Limited
  
• IIFL Capital Services Limited
  
• Kotak Mahindra Capital Company Limited
  
• SBI Capital Markets Limited
  

Svatantra Microfin Limited Contact Details
Sunshine Tower, Level 20, Senapati Bapat Marg, Elphinstone Road,
Mumbai – 400 013, Maharashtra, India
Email: cs@svatantramicrofin.com
Telephone: +91 22 6141 5900

Svatantra Microfin Business Model

Svatantra Microfin Limited generates revenue primarily through microfinance loans offered to individuals and small entrepreneurs. The company also provides affordable housing finance and loans against property through its wholly owned subsidiary, Svatantra Micro Housing Finance Corporation Limited. Microfinance accounted for 88.56% of consolidated AUM as of 31 March 2026, while secured lending products contributed the remaining 11.44%.

Svatantra Microfin Growth Trajectory

Svatantra Microfin Limited's Total Income for FY26 was ₹4,188.84 crore, whereas in FY25 and FY24 it was ₹3,494.01 crore and ₹2,465.20 crore, respectively.

The Profit After Tax for FY26 was ₹649.40 crore, whereas in FY25 and FY24 it was ₹445.38 crore and ₹345.14 crore, respectively.

Its EBITDA for FY26 was ₹2,132.62 crore, whereas in FY25 and FY24 it was ₹1,852.65 crore and ₹1,436.31 crore, respectively.

Svatantra Microfin Market Position

The company is the second-largest NBFC-MFI in India by MFI AUM as of 31 March 2026. Its MFI AUM increased from ₹14,437.87 crore in FY24 to ₹21,093.22 crore in FY26, representing a CAGR of 20.87%. Its share of India's total MFI AUM also increased from 3.26% to 6.37% during the period.

As of 31 March 2026, the company's Total Income, Profit After Tax and EBITDA stood at ₹4,188.84 crore, ₹649.40 crore and ₹2,132.62 crore, respectively.

How To Apply For Svatantra Microfin IPO?

• Step 1: Log in to your Kotak Neo Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details. Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID. After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification. Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request. Your funds will be blocked once you approve the mandate request on your UPI.