Northern Arc Capital Limited IPO to open on September 16

Ahmedabad: Northern Arc Capital Limited, shall open its Bid/Offer in relation to its initial public offer of Equity Shares on Monday, September 16, 2024. The initial public offering comprises a fresh issue of Equity Shares aggregating up to ₹ 5000 million and an offer for sale of up to 10,532,320 Equity Shares by the Selling Shareholders. The price band for the Offer is at ₹249  to ₹263 per Equity Share, the company said in a press statement.

The statement also states, “A discount of ₹24 per Equity Share is being offered to Eligible Employees bidding in the Employee Reservation Portion. Bids can be made for a minimum of 57 Equity Shares and in multiples of 57 Equity Shares thereafter. The Company intends to utilize the Net Proceeds to meet its future capital requirements towards onward lending in its focused sectors, namely, MSME financing, MFI, consumer finance, vehicle finance, affordable housing finance and agricultural finance, and to ensure compliance with the RBI regulations on capital adequacy, for Financial Year 2025.”

“The Offer for Sale of up to 10,532,320 Equity Shares comprises up to 3,844,449 Equity Shares by LeapFrog Financial Inclusion India (II) Ltd, up to  1,263,965 Equity Shares by Accion Africa-Asia Investment Company,  up to 1,408,918 Equity Shares by 360 ONE Special Opportunities Fund (formerly known as IIFL Special Opportunities Fund),  up to 1,746,950 Equity Shares by Eight Roads Investments Mauritius II Limited (formerly known as FIL Capital Investments (Mauritius) II Limited),  up to 1,344,828 Equity Shares by Dvara Trust (represented by its corporate trustee, Dvara Holdings (formerly known as Dvara Holdings Private Limited and as Dvara Trusteeship Services Private Limited), up to 923,210 Equity Shares by Sumitomo Mitsui Banking Corporation,” the company said.

The Equity Shares are being offered through the Red Herring Prospectus of the Company dated September 9, 2024 filed with the Registrar of Companies, Tamil Nadu at Chennai, India. The Equity Shares to be offered through the Red Herring Prospectus are proposed to be listed on the BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE” and together with BSE, the “Stock Exchanges”). For the purposes of the Offer NSE is the Designated Stock Exchange. (“Listing Details”)

ICICI Securities Limited, Axis Capital Limited and Citigroup Global Markets India Private Limited are the Book Running Lead Managers to the offer.