Northern Arc Capital Sets IPO Price Band At Rs 249-263 Per Share

Non-banking financial services firm Northern Arc Capital Ltd. has set a price band of Rs 249-263 per share for its initial public offering that will open next week.

The IPO of the Chennai-based company is a combination of a fresh issue of equity shares valued at Rs 500 crore and an offer for sale of 1.05 crore shares worth Rs 276 crore, according to the red herring prospectus.

The company's issue will open for subscription on Sept. 16 and will close on Sept. 19. Bidding for anchor investors will begin on Sept. 13. The minimum lot size for bidding will be 57 shares, with further bids to be made in multiples, according to the company.

Leapfrog Financial Inclusion India (II) Ltd., Accion Africa-Asia Investment Company, and 360 ONE Special Opportunities Fund will be among those selling shares as part of the OFS.

ICICI Securities Ltd., Axis Capital, and Citigroup Global Markets India are the book-running lead managers to the issue. The company's equity shares will be listed on both BSE and the National Stock Exchange.

Proceeds from the fresh issue would be used to meet future capital requirements of the company towards onwards lending.

The NBFC has a business model diversified across offerings, sectors, products, geographies, and borrower segments. It provides direct and indirect credit access to underserved households and businesses through originator partners.

Northern Arc Capital had filed its draft papers with the market regulator in July 2021 to float its maiden public issue. It got the regulator's nod to float the public issue in September same year, but didn't go ahead with the launch.