Northern Arc Capital Receives SEBI Approval for IPO

Northern Arc Capital Ltd, a diversified non-banking financial institution, has received SEBI approval for its IPO comprising a fresh issue of Rs 500 crore and an offer for sale of 2.1 crore shares by investors. The funds will be used for future capital requirements and onward lending.

Northern Arc Capital Ltd, a prominent non-bank financial institution, has received approval from the Securities and Exchange Board of India (SEBI) to initiate an initial public offering (IPO), according to a regulatory update on Monday.

The IPO will include a fresh equity issue worth Rs 500 crore and an offer for sale (OFS) of up to 2.1 crore equity shares by investor shareholders. The filing with SEBI names Leapfrog Financial Inclusion India (II) Ltd, Accion Africa-Asia Investment Company, Augusta Investments II Pte Ltd, Eight Roads Investments Mauritius II Ltd, Dvara Trust, and IIFL Special Opportunities Fund as those selling shares through the OFS.

Northern Arc Capital, which had previously filed preliminary IPO documents in January, received its observation letter from SEBI on July 12, indicating the regulator’s approval to proceed. The funds raised from the fresh issue will address future capital needs for onward lending. As a systemically important NBFC registered with the RBI, Northern Arc has been active in the financial inclusion space, offering diverse credit solutions across various sectors and geographies.