Northern Arc Capital IPO To Open On Sept. 16

Non-banking financial services firm Northern Arc Capital Ltd.'s initial public will open on Sept. 16 and close on Sept. 19. The IPO is a combination of a fresh issue of equity shares valued at Rs 500 crore and an offer-for-sale of up to 1.05 crore equity shares by investor shareholders, according to the red herring prospectus.

The Chennai-based company's issue will open for anchor investors on Sept. 13.

Leapfrog Financial Inclusion India (II) Ltd., Accion Africa-Asia Investment Company, Eight Roads Investments Mauritius II Ltd., Sumitomo Mitsui Banking Corporation, 360 ONE Special Opportunities Fund, and Dvara Trust will be selling shares as part of the OFS.

ICICI Securities, Axis Capital, and Citigroup Global Markets India are the book-running lead managers to the issue. KFin Technologies Limited is the official registrar for the issue.

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

The company's equity shares will be listed on both BSE and NSE. 

Northern Arc is a leading player amongst the country's diversified NBFCs, with 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.

The company had earlier filed the IPO papers in July 2021 and received Securities and Exchange Board of India approval in September 2021, but could not open an IPO within a period of one year from the SEBI approval.

The financial services company again filed the preliminary papers DRHP with the SEBI on Feb. 2, got approval on July 15, and received an observation letter on July 10.