Northern Arc Capital Collects INR 229 Cr from Anchor Investors Ahead of IPO Launch Kotak Mahindra Life Insurance Company, Reliance General Insurance Company, Goldman Sachs (Singapore), Societe Generale, and Quant Mutual Fund are among the anchor investors.
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Northern Arc Capital, a non-bank financial institution (NBFI), announced that it has raised INR 229 crore from anchor investors. This development comes just days before the company's much-anticipated initial public offering (IPO) opens for public subscription on September 16.
The IPO will run until September 19, giving retail and institutional investors an opportunity to participate in the Chennai-based company's market debut.
Among the key anchor investors who have participated in this pre-IPO funding round are major institutions, including SBI General Insurance Company, SBI Life Insurance Company, Reliance General Insurance Company, Kotak Mahindra Life Insurance Company, Goldman Sachs (Singapore) Pte, Societe Generale, and Quant Mutual Fund.
According to a circular on the Bombay Stock Exchange (BSE), Northern Arc has allotted 87.02 lakh equity shares to a total of 15 funds at a price of INR 263 per share. This price is at the upper limit of the company's designated price band, which ranges from INR 249 to INR 263 per share. The allocation has resulted in an aggregate transaction value of INR 229 crore.
The upcoming INR 777-crore IPO of Northern Arc Capital is structured as a combination of fresh equity issuance and an Offer for Sale (OFS) by the company's shareholders. Specifically, the IPO includes a fresh issue of shares worth INR 500 crore and an OFS of up to 10,532,320 equity shares, valued at INR 277 crore at the upper price band.
The IPO will be managed by ICICI Securities, Axis Capital, and Citigroup Global Markets India, who will act as the book-running lead managers. Investors can bid for a minimum lot size of 57 shares and in multiples thereafter, making the offering accessible to a range of potential participants.
Northern Arc plans to use the proceeds from the fresh issuance to meet its future capital needs, primarily to support its onward lending business.
The company's diversified model, which spans various offerings, sectors, and borrower segments, makes it a leading player in the country's non-banking financial services space. Its primary focus is on providing credit access to underserved households and businesses, either directly or through Originator Partners, a network that helps the company reach its target borrowers.
