Northern Arc Capital to Launch INR 777 Cr IPO on September 16 The IPO will remain open for public subscription until September 19, while anchor investors can participate starting September 13.
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Northern Arc Capital is set to launch its initial public offering (IPO) on September 16, 2024, offering a combination of fresh equity shares and an offer for sale (OFS).
The IPO will remain open for public subscription until September 19, while anchor investors can participate on September 13.
According to the final prospectus filed by the company, the fresh issue will raise INR 500 crore, while the OFS will involve the sale of 1.05 crore equity shares by selling shareholders, including LeapFrog Financial Inclusion India, Accion Africa-Asia Investment Company, and 360 ONE Special Opportunities Fund.
Northern Arc Capital, a diversified non-banking financial company (NBFC) headquartered in Chennai, plans to utilise the proceeds from the IPO to meet its capital requirements for onward lending.
The firm, which focuses on financial inclusion, provides credit access to underserved households and businesses, directly and indirectly, through its originator partners. Its business model is spread across various sectors, products, regions, and borrower segments, emphasising its commitment to reaching the underbanked.
The company has set a price band of INR 249-263 per share for the IPO, which is expected to raise a total of INR 777 crore. The offer includes INR 277 crore from the OFS and INR 500 crore from the fresh issue.
At the upper price band, Northern Arc's market capitalization is projected to be around INR 4,750 crore. ICICI Securities, Axis Capital, and Citigroup Global Markets India are the lead book managers for the issue, while KFin Technologies Limited is the official registrar.
This IPO marks the company's second attempt at going public. Previously, Northern Arc filed for an IPO in 2021 but failed to list within the approved timeframe of one year.
The company's equity shares will be listed on both BSE and NSE. The stock is expected to debut on September 24.
