News Update

Northern Arc Capital Files IPO Papers With Sebi

• ByStartupStory     |    July 16, 2021

Northern Arc Capital Ltd has filed its draft documents with capital markets regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial share-sale. The initial public offering (IPO) will comprise a fresh issue of equity shares worth Rs 300 crore and an offer-for-sale of up to 36,520,585 equity shares by shareholders, the draft red herring prospectus (DRHP) filed with Sebi showed.  Northern Arc Capital Ltd. registered with the RBI as a systemically important, non-deposit taking non-banking finance company (NBFC) has been working in the financial inclusion space for over a decade. Those offering shares through the offer-for-sale include Accion Africa-Asia Investment Company, Leapfrog Financial Inclusion India (II) Ltd, Augusta Investments II Pte Ltd, Eight Roads Investments Mauritius II Ltd, Dvara Trust and IIFL Special Opportunities Fund.

Northern Arc Capital may consider issuing equity shares on a private placement basis for cash consideration aggregating up to Rs 150 crore prior to the filing of the red herring prospectus with registrar of companies (RoC). Proceeds from the fresh issue would be used towards augmenting the company’s capital base to meet future capital requirements. The company is a leading player amongst the country’s diversified NBFCs, with a business model diversified across offerings, sectors, products, geographies and borrower segments. It enables access to credit to under-served households and businesses directly and indirectly through Originator Partners.

Northern Arc functions with a risk management framework that uses a combination of proprietary quantitative data analytics based on over 22 million unique data points and qualitative field-level insights that aid credit assessment and monitoring. Credit Suisse Securities (India) Private Limited, Axis Capital Limited, IIFL Securities Limited and SBI Capital Markets Limited have been appointed as the merchant bankers to advise the company on the IPO.

Follow Startup Story