Arohan Financial Services, a microfinance institution based in India, is preparing to file for an initial public offering (IPO) valued at ₹1,400 crore (approximately $168 million USD) within the next month. The company plans to allocate ₹600 crore for a primary issue and ₹800 crore for an offer for sale (OFS), with long-time investors such as the Michael & Susan Dell Foundation expected to sell shares through the OFS. Arohan's managing director, Manoj Nambiar, stated that the company aims to file the draft red herring prospectus (DRHP) soon, capitalizing on a positive market outlook. The microfinance sector has begun to recover from significant asset quality stress, with Arohan's gross non-performing assets ratio improving to 1.6% from 2.9% a year ago. The company's assets under management currently stand at ₹6,300 crore. Despite previous plans to launch an IPO in January for ₹1,500 crore, the size was reduced due to market instability following the Iran war. The microfinance sector's total book size reached ₹3.29 lakh crore at the end of February, reflecting a 2.5% increase over the previous month, indicating a rebound in lending activities.