Northern Arc Capital Ltd.’s initial public offering opened on Monday, with the company aiming to raise up to Rs 776 crore. It secured Rs 228.9 crore from anchor investors on Friday, prior to the offering.
The Non-Banking Financial Company has set a price band of Rs 249–263 per share for its three-day IPO. The offer includes a fresh issue of equity shares worth Rs 500 crore and an offer for sale of Rs 275 crore.
The minimum application lot size is 57 shares. The IPO will conclude on Wednesday and is set to be listed on the BSE and the National Stock Exchange. Proceeds from the fresh issue will be used to support the company’s future capital requirements for lending.
Ahead of the IPO, Northern Arc Capital allotted 87.02 lakh shares at Rs 263 per share to 15 anchor investors, raising Rs 228.9 crore. The largest allocations went to Quant Mutual Fund-Quant BFSI Fund, SBI Life Insurance Co., SBI General Insurance Co., Singularity Equity Fund I, and Volrado Venture Partners Fund VI Gamma, each receiving 11.26% of the allocation.
Issue Price
Issue opens: Sept. 16.
Issue closes: Sept. 19.
Issue price: Rs 249 to Rs 263 per share.
Fresh issue: Rs 500 crore.
Offer for sale: Rs 275 crore.
Total issue size: Rs 277 crore.
Bid lot: 57 shares.
Listing: BSE and NSE.
Business
The Chennai-based company operates a diverse business model across offers, sectors, products, locations, and borrower categories. It serves underserved households and companies with direct and indirect credit access via originator partners.
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Use Of Proceeds
Proceeds from fresh issue will be allocated towards various lending sectors, including Rs 150 crore each for MSME finance, microfinance, and consumer finance. Additionally, Rs 25 crore will go towards vehicle finance, Rs 5 crore towards affordable housing finance, and Rs 20 crore will be used for agricultural finance.
Subscription Status: Day 1
The IPO has been subscribed 0.21 times, or 21% as of 10:36 a.m. on Monday.
Qualified Institutional Buyers: 0 times or 0%.
Non-institutional Investors: 0.21 times or 21%.
Retail Investors: 0.34 times or 34%.
Employee Reserve: 0.08 times or 8%
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Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.
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