Financial services platform Northern Arc announced on Monday that it has received approval from the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The company submitted its draft red herring prospectus (DRHP) to SEBI in February this year to raise funds via the IPO. The IPO includes a fresh issuance of equity shares worth ₹500 crore and an offer-for-sale (OFS) of 2.1 crore equity shares by existing investors.
The entities selling shares through the OFS include Leapfrog Financial Inclusion India (II) Ltd, Accion Africa-Asia Investment Company, Augusta Investments II Pte Ltd, Eight Roads Investments Mauritius II Ltd, Dvara Trust, and IIFL Special Opportunities Fund.
Northern Arc Capital, which filed preliminary IPO papers with SEBI in January, received its observation letter on July 12. In SEBI’s terms, obtaining an observation letter signifies approval to proceed with the public issue.
According to the draft papers, the money from the fresh issue will be used to meet the company’s future capital needs for onward lending.
Northern Arc is registered with the RBI as a systemically important non-deposit-taking non-banking finance company (NBFC) and has been operating in the financial inclusion space for over a decade. It is a leading player among the country’s diversified NBFCs, offering a wide range of products across various sectors, geographies, and borrower segments. The company provides access to credit for underserved households and businesses, both directly and indirectly, through its Originator Partners.
Chennai-based Northern Arc Capital had previously filed draft papers with SEBI in July 2021 to launch its first public issue, receiving the regulator’s approval in September of that year. However, it did not proceed with the launch at that time.
In addition to Northern Arc Capital, Shree Tirupati Balajee Agro Trading Company Ltd also received SEBI’s approval on July 12 to proceed with its IPO. The company had filed draft IPO papers with the regulator in March.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
