Northern Arc Capital Raises Rs 229 Crore From Anchor Investors
Northern Arc Capital will launch its initial public offering on Monday to raise up to Rs 776 crore.
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Northern Arc Capital Ltd. raised Rs 228.9 crore from anchor investors on Friday ahead of its initial public offering. The company allotted 87.02 lakh shares at Rs 263 apiece to 15 anchor investors.
Quant Mutual Fund-Quant BFSI Fund, SBI Life Insurance Co., SBI General Insurance Co., Singularity Equity Fund I and Volrado Venture Partners Fund VI Gamma got the highest allocation of 11.26% each. Abakkus Diversified Alpha Fund-2, Anchorage Capital Fund-Anchorage Capital Scheme I, Canara HSBC Life Insurance Co. and Kotak Mahindra Life Insurance Co. got the second highest allotment of 6.55% each.
A domestic mutual fund has applied for 11.26% of the total allocation of the anchor investors, Northern Arc Capital said in an exchange filing on Friday. ICICI Securities Ltd., Axis Capital Ltd. and Citigroup Global Markets are the book-running lead managers to the issue.
Northern Arc Capital will launch its IPO on Monday to raise up to Rs 776 crore. It has set a price band of Rs 249–263 per share for its three-day IPO, which comprises a fresh issue of equity shares worth Rs 500 crore and an offer for sale of Rs 275 crore.
The minimum application lot size is 57 shares. The offer, which concludes on Wednesday, is set to list on the 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.
