Northern Arc Capital IPO subscribed 111 times on final day

Northern Arc Capital IPO

The initial public offering (IPO) of non-banking financial institution Northern Arc Capital received 110.71 times subscription on the closing day of the share sale on September 19.

The Rs 777-crore share sale received bids for 2,37,79,44,639 shares against 2,14,78,290 shares on offer, as per NSE data.

The quota for qualified institutional buyers (QIBs) got subscribed 240.79 times, while non-institutional investors subscribed the offer 142.28 times. The category for retail individual investors (RIIs) fetched 30.74 times subscription.

Northern Arc Capital on Friday said it has collected Rs 229 crore from anchor investors.

The Rs 777-crore IPO of the Chennai-based company has a price range of Rs 249-263 per share.

The IPO is a combination of a fresh issue of equity shares valued at Rs 500 crore and an offer for sale (OFS) of up to 1,05,32,320 equity shares worth Rs 277 crore, at the upper end of the price band, by investor shareholders. This aggregates the issue size to Rs 777 crore.

Proceeds from the fresh issue will be used to meet future capital requirements of the company towards onward lending.

Registered with the Reserve Bank of India (RBI) as systemically important, the company is a non-deposit-taking non-banking financial company (NBFC) and has been operating in the financial inclusion space for over a decade.

Northern Arc is a leading player among the country's diversified NBFCs, with a business model diversified across offerings, sectors, products, geographies and borrower segments. It provides access to credit to under-served households and businesses directly and indirectly through originator partners.

ICICI Securities, Axis Capital, and Citigroup Global Markets India are the book-running lead managers to the issue.