MC Exclusive: Svatantra Microfin to File IPO with Axis, Kotak as Lead Managers

Aditya Birla Group-Backed Svatantra Microfin Prepares for IPO

Svatantra Microfin Private Ltd, one of India's largest microfinance institutions (MFI), has selected investment banks Axis Capital and Kotak Mahindra Capital as advisors for its proposed initial public offer (IPO). The news comes after the MFI invited a clutch of investment banks to make pitches as it kickstarted preparation for a domestic listing to fuel further growth.

According to multiple industry sources, the deal is set to kick off in early April, with the size of the proposed issue likely to be between Rs 2,000 crore to Rs 2,500 crore. Additionally, discussions have been held with SBI Capital-Investec, JM Financial, and BofA Securities for advisory roles. The investment banks are expected to work together in a syndicate, with more banks possibly being added later if required.

Svatantra Microfin's decision to list comes two years after the firm sealed the largest investment ever by private equity investors in the microfinance sector. In March 2024, the firm entered into definitive agreements with Advent International and Multiples Private Equity for an investment of Rs 1,930 crore or $230 million. The planned IPO will offer external investors the opportunity to pare stake in the company.

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Key Players in the IPO

Svatantra Microfin's journey began in 2013 when Ananya Birla, scion of the Aditya Birla Group, founded the firm at the age of 17. The firm, which provides affordable financial and non-financial solutions to women entrepreneurs, has grown significantly over the years. With 4 million plus customers and 24,000 plus employees across 2,064 branches in 19 states, Svatantra Microfin has established itself as one of the largest players in the sector.

Firm's Financial Performance

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The firm's net profit rose 309.30 per cent to Rs 72.65 crore in the quarter ended December 2025, compared to Rs 17.75 crore during the previous quarter ended December 2024. Sales also rose 33.65 per cent to Rs 494.18 crore in the quarter ended December 2025, compared to Rs 369.77 crore during the previous quarter ended December 2024.

As the firm prepares for its IPO, Chairperson Ananya Birla has reaffirmed the promoters' commitment to the company, stating that ownership remains above 51 per cent in all scenarios, ensuring long-term stability and readiness to infuse capital when required.