Northern Arc Capital IPO Subscription Details on Day 1

16 Sep 2024 , 04:47 PM

Northern Arc Capital Ltd, a non-bank financial institution, opened its ₹777-Crore Initial Public Offering (IPO) for public subscription on Monday. The price band for the IPO is set between ₹249 to ₹263 per share.

At the time of writing at 4:40pm on the first day, the IPO saw 2.76 times subscription, the Non-institutional investors subscribed 4.25 times, while retail individual investors (RIIs) subscribed 3.75 times.

Northern Arc Capital raised ₹229 Crore from anchor investors before the IPO opening, 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 ₹263 per share, totaling ₹229 Crore. The IPO includes a fresh equity issue worth ₹500 Crore and an Offer For Sale (OFS) of 10,532,320 shares, aggregating ₹777 Crore.

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

Proceeds from the fresh issue will fund the company’s capital requirements for onward lending. Investors can bid for a lot size of 57 shares and in multiples thereafter.

Northern Arc Capital, an RBI-registered NBFC, has been operating in the financial inclusion space for over a decade, providing credit access to underserved households and businesses.

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