Northern Arc Capital IPO: For the past few months, companies have been continuously launching IPOs. In this series, the initial public offering (IPO) of Rs 777 crore of non-banking finance company Northern Arc Capital is going to open on September 16. At the same time, the closing of the IPO is going to be on September 19. Before the opening of the IPO, major (anchor) investors will be able to bid on September 13.
Issue price of share is Rs 263
The issue price for the IPO has been fixed at Rs 249-263 per share. Under the IPO, there will be an offer for sale (OFS) of 1,05,32,320 shares worth up to Rs 277 crore from investors along with fresh equity shares worth Rs 500 crore. Thus, the size of the issue becomes Rs 777 crore.
What is the company’s plan
Northern Arc Capital will use the proceeds from the IPO to fund the company’s capital requirements. ICICI Securities, Axis Capital and Citigroup Global Markets India are acting as book running lead managers to the issue. KFin Technologies Ltd is the official registrar to the issue. The equity shares of the company will be listed on both BSE and NSE.
Preparing for IPO since 3 years
Earlier, the company had filed IPO papers in July 2021 and received approval for it from the capital market regulator in September 2021. The company’s IPO could not be launched within a period of one year from SEBI’s approval. This Chennai-based company again filed DRHP i.e. Draft Red Herring Prospectus with SEBI on February 2. Now its IPO is about to be launched.
About the Company
It is registered with the RBI as a Systemically Important Non-Deposit taking Non-Banking Finance Company (NBFC) and has been operating in the financial inclusion space for over a decade.
