Northern Arc Capital IPO Oversubscribed 20.15 Times
Sep 18, 2024 18:42
Northern Arc Capital's IPO received 20.15 times subscription on the third day of bidding, with strong interest from non-institutional investors and retail investors. The ₹777 crore IPO will conclude on September 19.
New Delhi, Sep 18 (PTI) The initial public offer of non-bank financial institution Northern Arc Capital Ltd received 20.15 times subscription on the third day of bidding on Wednesday.
The share sale received bids for 43,27,38,471 shares against 2,14,78,290 shares on offer, as per NSE data.
The portion meant for non-institutional investors got subscribed 50.76 times while the category for Retail Individual Investors (RIIs) received 18.94 times subscription. The Qualified Institutional Buyers (QIBs) quota fetched 31 per cent subscription.
Northern Arc Capital on Friday said it has collected Rs 229 crore from anchor investors.
The Rs 777-crore IPO of the Chennai-based company will conclude on September 19. The price has been fixed in the range of Rs 249-263 per share.
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 1,05,32,320 equity shares worth Rs 277 crore, at the upper end of the price band, by investor shareholders. This aggregates the issue size to Rs 777 crore.
Those 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-bank 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.
ICICI Securities, Axis Capital and Citigroup Global Markets India are the book-running lead managers to the issue.
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