Svatantra Microfin Limited

• Augmenting our Company’s Tier I capital base to meet our future capital requirements including onward lending, arising out of the growth of our business and assets
• Meeting the Offer Expenses

The Company, Subsidiary, Promoters and Directors are involved in various litigation proceedings including civil suits, criminal proceedings, actions by statutory and regulatory authorities, and tax proceedings. Pending at different levels of adjudication before various courts, tribunals, enquiry officers and appellate tribunals. As on the date of this Draft Red Herring Prospectus, there are no outstanding criminal proceedings, actions taken by regulatory and statutory authorities (including penalties and show cause notices), disciplinary action including penalties imposed by SEBI or Stock Exchanges against Promoters in the last five Financial Years, claims related to direct and indirect taxes in a consolidated manner, or other pending civil proceedings including arbitration matters determined to be material. The Board has adopted a materiality policy for outstanding litigation.

• The microfinance borrowers primarily consist of women with an annual household income of up to ₹ 300,000, who have limited or no financial information available and limited credit history, making consistent credit risk analysis difficult and posing a higher risk of default.(Credit Risk)

• The microfinance business primarily offers unsecured loans without realisable collateral, and 99.16% of unsecured AUM is guaranteed by members of informal joint liability groups (JLGs), which may not result in repayment by other members in the event of a default.(Credit Risk)

• An increase in the level of non-performing assets (NPAs) or provisions may adversely affect the business, results of operations, financial condition and cash flows.(Asset Quality)

• The Gross Stage 3 Ratio was 1.37% as of March 31, 2026, and the Gross Stage 3 Loans Loss Allowance Coverage Ratio for the MFI entity was 76.90% as of March 31, 2026.(Asset Quality)

• The microfinance industry faces risks due to the category of borrowers, which may lead to increased write-offs and lower collection efficiency.(Credit Risk)

• The company's microfinance borrowers may delay and/or default on repayment obligations due to volatility in income, insolvency, or lack of liquidity.(Credit Risk)

• The company's microfinance borrowers may take on additional borrowing obligations from the informal moneylending ecosystem, which may pressure their ability to repay loans from the company.(Credit Risk)

• The company acquired 100.00% stake in Chaitanya India Fin Credit Private Limited, an NBFC-MFI, which was amalgamated into the company under applicable provisions of the Companies Act, 2013, on a going concern basis with effect from March 21, 2026.(Corporate)

Each bar is a fixed formula applied to the figures shown above, scored 0–100. This is a reading of what the company disclosed — not a recommendation to apply or avoid, not a price target, and not a prediction of listing performance. Dimensions that could not be extracted are excluded rather than assumed, so coverage varies between documents.