Northern Arc Capital's Rs 500 Cr IPO to open on September 16

Non-bank financial institution Northern Arc is looking to launch its Initial Public Offering (IPO), involving fresh issue of shares worth Rs 500 crore, on September 16.

The Chennai-based company's initial share-sale will conclude on September 19 and the bidding for anchor investors will open for a day on September 13, according to the Red Herring Prospectus (RHP).

The IPO is a combination of a fresh issue of equity shares valued at Rs 500 crore and an Offer For Sale (OFS) of up to 1.05 crore equity shares by investor shareholders.

The shareholders offering shares through the OFS are 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 (formerly known as IIFL Special Opportunities Fund) and Dvara Trust.

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

Registered with the RBI as a systemically important, the company is a non-deposit taking non-banking finance company (NBFC) and has been operating in the financial inclusion space for over a decade.

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 access to credit to under-served households and businesses directly and indirectly through Originator Partners.

Earlier, Northern Arc Capital filed draft papers with SEBI in July 2021 to float its maiden public issue. It got the regulator's nod to float the public issue in September same year. However, it didn't go ahead with the launch.

ICICI Securities, Axis Capital and Citigroup Global Markets India are the book-running lead managers to the issue.