Northern Arc Capital IPO to open on September 16; includes Rs 500 crore fresh equity issue, and an OFS

Northern Arc Capital IPO eyes Rs 500 crore via fresh issue

Northern Arc Capital initial public offer (IPO), including a fresh issue of Rs 500 crore, will open for public subscription on September 16 and conclude on September 19, according to the final prospectus filed by the company. The issue will open for anchor investors on Friday, 13 September.

The issue has a combination of a fresh issue of equity shares worth up to Rs 500 crore and an offer for sale (OFS) of 1.05 crore equity shares by selling shareholders, including LeapFrog Financial Inclusion India, Accion Africa-Asia Investment Company and 360 ONE Special Opportunities Fund, showed the Red Herring Prospectus (RHP).

The diversified NBFC plans to utilise IPO proceeds to meet future capital requirements towards onward lending.

Earlier it had filed the IPO papers in July 2021 and received approval for the same from the capital markets regulator in September 2021, but could not hit Dalal Street within a period of one year from the SEBI approval. The Chennai-based financial services company again filed the preliminary papers (DRHP - Draft Red Herring Prospectus) with SEBI on February 2.

ICICI Securities, Axis Capital, and Citigroup Global Markets India are acting as book running lead managers to the issue. KFin Technologies Limited is the official registrar to the issue.

The company's equity shares will be listed on both BSE and NSE. It is registered with the RBI as a systemically important non-deposit-taking non-banking finance company (NBFC) and has been working in the financial inclusion space for over a decade.

Northern Arc claims a business model spread across various offerings, sectors, products, regions, and borrower segments. It provides credit access to under-served households and businesses, both directly and indirectly, through its originator partners.

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