Northern Arc Capital Secures ₹229 Cr from Anchor Investors Ahead of IPO Launch – SBI Life, Goldman Sachs Among Key Investors

Northern Arc Capital, a non-bank financial institution, has raised ₹229 crore from anchor investors just days before its Initial Public Offering (IPO). Some of the key investors include SBI General Insurance, SBI Life Insurance, Reliance General Insurance, Kotak Mahindra Life Insurance, Goldman Sachs (Singapore), Societe Generale, and Quant Mutual Fund.

According to a circular from the BSE, Northern Arc Capital has allotted 87.02 lakh equity shares to 15 funds at ₹263 per share, which is the upper limit of its price range. This brings the total amount raised to ₹229 crore.

The ₹777 crore IPO of the Chennai-based company will open for public subscription on September 16 and close on September 19. The share price range has been set between ₹249 and ₹263 per share.

The IPO consists of two parts: a fresh issue of shares worth ₹500 crore and an Offer For Sale (OFS) of up to 10,532,320 shares, worth ₹277 crore at the higher end of the price band, from existing investors. This brings the total IPO size to ₹777 crore.

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

Northern Arc Capital will use the funds from the fresh issue to meet its future capital needs for onward lending. The company confirmed that the price range for the IPO is ₹249 to ₹263 per share, and investors can bid for a minimum lot of 57 shares, and multiples of it.

Registered with the Reserve Bank of India (RBI) as a systemically important non-deposit taking non-banking finance company (NBFC), Northern Arc Capital has been involved in the financial inclusion sector for over 10 years. It provides credit to underserved households and businesses, either directly or through its Originator Partners.

Northern Arc Capital is considered a major player among the diversified NBFCs in India, with a business model spread across different sectors, products, regions, and borrower groups.

The company initially filed for an IPO in July 2021 and received approval from SEBI in September of that year, but did not proceed with the launch at that time.

ICICI Securities, Axis Capital, and Citigroup Global Markets India are the lead managers for the IPO.