Northern Arc Capital announced the price band for its initial public offering (IPO) wrth Rs 777 crore on Wednesday. The maiden offer of the non-bank financial institution will accept bids for subscription from September 16-19, 2024.
The price band of the issue has been fixed at Rs 249 to Rs 263 apiece, reported PTI. Anchor investors will be able to place bids for the issue on September 13, 2024. The IPO comprises a fresh issue of equity shares worth Rs 500 crore and an offer-for-sale (OFS) of up to 1.05 crore equity shares coming up to Rs 277 crore, by investor shareholders.
The OFS is being offered by 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.
The funds raised from the issue would be utilised to cater to future capital requirements of the firm and see to lending needs. Investors will be allowed to place bids for a minimum of 57 equity shares and in multiples of thereafter.
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The company is based out of Chennai and is registered with the Reserve Bank of India (RBI) as a systemically important entity. It is a non-deposit taking non-banking finance company (NBFC) and has been working in the financial inclusion sector for more than a decade.
Northern Arc Capital submitted draft papers with the Securities and Exchange Board of India (SEBI) in July 2021 to list its issue publicly. It did receive approval from the capital markets regulator to go ahead with the issue in the same year in September, however, it didn’t go ahead with the launch at the time.
The book-running lead managers of the issue include ICICI Securities, Citigroup Global Markets India, and Axis Capital.