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Informist, Tuesday, Jun. 30, 2026

MUMBAI – Social Worth Technologies Ltd. late Monday filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering of shares. The offering includes a fresh issue of shares worth up to INR 7.5 billion and an offer for sale of 40.07 million shares. The face value of each share is INR 5.

No promoter entity will sell shares under the offer for sale. Among existing investors, private equity firm TPG Inc. affiliate The Rise Fund III SF Pte. Ltd. will sell 11.71 million shares, the largest chunk in the offer for sale. Other investors, such as Norwest Capital LLC., Eight Roads Ventures India LLP., and Piramal Finance Ltd., will sell between 3.56 million shares and 6.74 million shares.

Social Worth Technologies may also consider raising an additional INR 1.5 billion through a pre-initial public offering placement offer, according to the draft papers. The anchor bidding round will be opened one working day before the launch of the public offer.

Of the INR 7.5-billion net proceeds from the fresh issue, the company will use INR 5.63 billion to invest in subsidiary ESPL to augment its capital base and meet its onward lending requirement. ESPL is a non-banking finance company registered with the Reserve Bank of India. The rest of the funds will be used for general corporate purposes.

Social Worth Technologies operates the digital consumer-financing platform Fibe that offers personal loans and financing for education, insurance, health care, rooftop solar, travel, and e-commerce. The company's total assets under management have grown at a compounded annual growth rate of 46% to INR 86 billion as of Mar. 31, from INR 40.6 billion as of Mar. 31, 2024.

Among the risks, the company has listed deterioration of asset quality that could adversely affect its financial condition. As of Mar. 31, the company's unsecured loans were worth INR 85.5 billion, which is close to its total assets under management. Unsecured loans do not benefit from collateral security and may therefore be subject to higher credit risk and lower recovery prospects as compared to secured loans, the company said in the draft papers.

The second risk factor is its reliance on continued availability, performance, security, and scalability of its technology systems and digital platforms. Any disruption will leave the company in a vulnerable position. The next difficult factor for the company is that 38.5% of its personal loan disbursements for the financial year 2025-26 (Apr-Mar) were taken by new customers, which means exposure to higher credit risk.

The public offer, to be made through the book-building process, is being managed by Kotak Mahindra Capital Co. Ltd., Axis Capital Ltd., DAM Capital Advisors Ltd., and JM Financial Ltd. MUFG Intime India Pvt. Ltd. is the registrar for the offer. The company's shares are proposed to be listed on both the National Stock Exchange and BSE.

Qualified institutional buyers will be allocated up to 50% of the shares on offer. Not less than 15% of the offer will be available for allocation to non-institutional bidders, while not less than 35% will be available for allocation to retail investors, according to the draft papers.

For FY26, the company had reported a consolidated net profit of INR 2.6 billion and a total income of INR 16 billion. For FY25, the company's consolidated bottom line was INR 1.1 billion and the top line was INR 12.2 billion.  (Gopika Balasubramanium)  End

Edited by Shubhayan Bhattacharya

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