Arohan Financial Services has recently announced a delay in its IPO worth $200 million due to increased scrutiny from the Reserve Bank of India (RBI) regarding its lending practices.

The company specializes in microfinance and primarily offers loans to groups of three to five women, with an interest rate of 24.25%. The loan amounts range from 25,000 rupees ($297) to 100,000 rupees, with a repayment tenure of 24 to 30 months.

This decision comes as the RBI tightens its regulations on lending practices, impacting the microfinance sector's ability to raise capital through public offerings.