Northern Arc Capital IPO: NBFC Secures ₹229 Crore from Major Anchor Investors Ahead of Public Launch

Northern Arc Capital, a non-banking financial company (NBFC), announced on Friday that it raised ₹229 crore from anchor investors just before its IPO opens for public subscription. Some of the major anchor investors include SBI General Insurance, SBI Life Insurance, Reliance General Insurance, Kotak Mahindra Life Insurance, Goldman Sachs (Singapore), Societe Generale, and Quant Mutual Fund.

Allotment to Anchor Investors

According to the company’s statement on the BSE website, it allotted 87.02 lakh shares to 15 funds at ₹263 per share, which is the highest price within the IPO price band. This brings the total raised amount to ₹229 crore.

Details of the Upcoming IPO

The ₹777-crore IPO is set to open on September 16 and will close on September 19. The share price is set between ₹249 and ₹263 per share.

Structure of the IPO

The IPO includes a fresh issue of shares worth ₹500 crore and an Offer for Sale (OFS) of 10.53 lakh shares, valued at ₹277 crore at the top of the price band, by current investors. This brings the total IPO size to ₹777 crore.

Investors Offering Shares in the OFS

The OFS sellers include Leapfrog Financial Inclusion India, Accion Africa-Asia Investment Company, Eight Roads Investments Mauritius II, Sumitomo Mitsui Banking Corporation, 360 ONE Special Opportunities Fund (formerly IIFL Special Opportunities Fund), and Dvara Trust.

Use of IPO Proceeds

Funds from the fresh issue will be used by Northern Arc to meet future lending requirements.

IPO Bidding Details

Investors can bid for a minimum of 57 shares, with bids allowed in multiples thereafter.

About Northern Arc Capital

Northern Arc, a systemically important NBFC, has been in the financial inclusion business for over a decade, helping underserved households and businesses gain access to credit. It works directly and indirectly with Originator Partners and has a diversified business model across various sectors and borrower segments.

Previous IPO Plans

The company initially filed its IPO draft in July 2021 and received approval from SEBI the same year but delayed its public issue launch. ICICI Securities, Axis Capital, and Citigroup Global Markets India are the lead managers for the IPO.