Northern Arc Capital Raises Rs 229 Crore from Anchor Investors Ahead of IPO

Non-bank financial institution Northern Arc Capital secured Rs 229 crore from anchor investors ahead of the public IPO. Major investors include SBI Life and Reliance General Insurance. The IPO, set between Rs 249-263 per share, opens on September 16. The offering, sized at Rs 777 crore, includes a fresh issue and an OFS.

Non-bank financial institution Northern Arc Capital announced on Friday that it has secured Rs 229 crore from anchor investors, days before its public IPO opens for subscription.

Anchor investors such as SBI General Insurance, SBI Life Insurance, Reliance General Insurance, and Kotak Mahindra Life Insurance participated in the pre-IPO round.

A circular on BSE's website indicates that Northern Arc allotted 87.02 lakh equity shares to 15 funds at Rs 263 per share, aggregating the transaction to Rs 229 crore. The Rs 777-crore IPO will open from September 16 to 19, with prices set between Rs 249-263 per share.

The IPO features a fresh issue of Rs 500 crore and an Offer For Sale of 10,532,320 shares worth Rs 277 crore from existing shareholders, including Leapfrog Financial Inclusion India and Accion Africa-Asia Investment. Proceeds will be used to meet future capital requirements for onward lending.

Northern Arc, a leading diversified NBFC, has been a significant player in the financial inclusion space for over a decade, providing credit access to under-served households and businesses.

ICICI Securities, Axis Capital, and Citigroup Global Markets India are the lead managers for the issue.

(With inputs from agencies.)