Northern Arc Capital Files for IPO to Raise Funds

New Delhi, February 3: Northern Arc Capital Ltd, a non-banking financial institution, has filed preliminary papers with the Securities and Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO).

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IPO Details

The IPO comprises a fresh issue of equity shares worth Rs 500 crore and an Offer For Sale (OFS) of up to 2.1 crore equity shares by investor shareholders. The OFS includes shares offered by Leapfrog Financial Inclusion India II Ltd, Accion Africa-Asia Investment Company, Augusta Investments II Pte Ltd, Eight Roads Investments Mauritius II Ltd, Dvara Trust, and IIFL Special Opportunities Fund.

Pre-IPO Round

Northern Arc Capital may consider raising up to Rs 100 crore in a pre-IPO round. The proceeds from the fresh issue will be utilized to meet future capital requirements for onward lending.

Company Overview

Registered with the Reserve Bank of India (RBI), Northern Arc Capital is a non-deposit taking non-banking financial company that has been operating in the financial inclusion space for over a decade. It is a leading diversified NBFC in India, with a business model spanning various offerings, sectors, products, geographies, and borrower segments.

Access to Credit

Northern Arc Capital provides access to credit to underserved households and businesses directly and indirectly through originator partners.

Previous Filing

In July 2021, Northern Arc Capital filed draft papers with Sebi to launch its maiden public issue. The company received Sebi's approval to float the public issue in September 2021, but it did not proceed with the launch.

Merchant Bankers

Axis Capital, ICICI Securities, and Citigroup Global Markets India have been appointed as the merchant bankers to advise Northern Arc Capital on the IPO.

Northern Arc Capital's IPO is expected to generate significant interest from investors, given the company's strong position in the financial inclusion sector and its track record of growth. The IPO proceeds will enable the company to expand its operations and reach a wider customer base.