Northern Arc Capital IPO: Date, price band, lot size and all you need to know

Northern Arc Capital IPO date: Non-bank financial institution Northern Arc Capital Ltd will launch its initial public offering (IPO), involving a fresh issue of equity shares worth ₹500 crore, on September 16. The issue, which has set a price band of ₹249-₹263, will conclude on September 19.

According to the Red Herring Prospectus (RHP), the bidding for anchor investors will take place on September 13.

The IPO consists of a fresh issuance of equity shares worth ₹500 crore and an offer for sale (OFS) component of up to 1.05 crore shares by existing shareholders.

Under the OFS, Leapfrog Financial Inclusion India (II) Ltd, Eight Roads Investments Mauritius II Ltd, Accion Africa-Asia Investment Company, Sumitomo Mitsui Banking Corporation, Dvara Trust and 360 ONE Special Opportunities Fund (formerly IIFL Special Opportunities Fund) will offload their stakes.

Northern Arc Capital IPO: Price band and lot size

The company has set a price range of ₹249-₹263 for the initial share sale. Investors can bid for at least one lot, consisting of 57 shares, and in multiples after that.

The proceeds from the fresh issue will be used to meet the company's future capital requirements for onward lending.

Half of the net offer has been registered for qualified institutional buyers (QIBs), 35% for retail investors and the remaining 15% for non-institutional investors.

About Northern Arc Capital

It provides credit to under-served households and businesses indirectly and directly through Originator Partners.

Earlier, Northern Arc Capital filed draft IPO papers with market regulator SEBI in July 2021 to launch its maiden public issue. It got the regulator's approval to float the public issue in September of the same year. However, it didn't go ahead with the launch.

Axis Capital, Citigroup Global Markets India and ICICI Securities are the book-running lead managers to the issue.