Northern Arc Capital IPO Subscription Details on Day One

Northern Arc Capital Ltd, a non-bank financial institution, on Monday opened its ₹777-crore initial public offering (IPO) for public subscription. The IPO price band was set at ₹249-₹263 per share.

At the time of writing at 16:40 on the first day of the IPO, the number of subscriptions was 2.76, the number of subscriptions from non-institutional investors was 4.25 and the number of subscriptions from individual investors (RII) was 3.75.

Ahead of the IPO, Northern Arc Capital raised ₹229 crore from anchor investors including SBI General Insurance, SBI Life Insurance, Reliance General Insurance and Kotak Mahindra Life Insurance.

The company allotted 87.02 lakh shares to 15 anchor investors at Rs 263 per share, aggregating to Rs 229 crore. The public offer comprises a fresh issue of shares worth ₹500 crore and an offer for sale (OFS) of 10,532,320 shares worth an aggregate of ₹777 crore.

Major shareholders selling shares through OFS include Leapfrog Financial Inclusion India, Accion Africa-Asia Investment and Sumitomo Mitsui Banking Corporation.

The proceeds from the new issue will be used to cover the company’s capital needs for further lending. Investors can bid for a batch of 57 shares and then for multiples of that number.

Northern Arc Capital, a Reserve Bank of India-registered non-bank financial company (NBFC), has been working in the financial inclusion sector for over a decade, providing access to credit to underserved households and businesses.

The Company’s diversified business model spans multiple offerings, sectors, products, geographies and borrower segments. ICICI Securities, Axis Capital and Citigroup Global Markets India are the lead managers for the IPO.