Northern Arc Capital IPO Opens Sep 16: Price Band Rs 249-263/share

New Delhi, Sep 11 (PTI) Non-bank financial institution Northern Arc Capital on Wednesday said it has fixed a price band of Rs 249-263 per share for its upcoming Rs 777 crore initial public offering (IPO).

The Chennai-based company's initial share sale will open for public subscription on September 16 and conclude on September 19. The bidding for anchor investors will open for a day on September 13.

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.

"The price band for the offer is at Rs 249 to Rs 263 per equity share," Northern Arc Capital said in a statement.

Investors will have the option to bid for a lot size of 57 equity shares and in multiples thereafter.

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 at that time.

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