Northern Arc Capital, a non-banking financial company (NBFC), is set to launch its ₹777 crore Initial Public Offering (IPO) on September 16. The price range for the shares has been set between ₹249 and ₹263 per share. The IPO will close on September 19, and bidding for anchor investors will open on September 13.
The IPO includes a fresh issue of shares worth ₹500 crore, along with an Offer For Sale (OFS) of up to 1,05,32,320 shares, valued at ₹277 crore at the top price of the range. Shares in the OFS will be sold by several shareholders, including Leapfrog Financial Inclusion India, Accion Africa-Asia Investment Company, Eight Roads Investments Mauritius II, Sumitomo Mitsui Banking Corporation, 360 ONE Special Opportunities Fund, and Dvara Trust.
The funds raised from the fresh issue will be used to meet the company’s future capital needs, mainly for onward lending. Northern Arc Capital provides credit to underserved households and businesses, either directly or through partner organizations. It has been operating in the financial inclusion sector for more than a decade.
Investors can bid for a minimum of 57 shares and in multiples of 57 shares thereafter. The company is registered with the Reserve Bank of India (RBI) as a systemically important, non-deposit-taking NBFC. Northern Arc Capital had initially planned to launch its IPO in 2021 but decided to postpone it.
ICICI Securities, Axis Capital, and Citigroup Global Markets India are the lead managers for the IPO.
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