Northern Arc Capital IPO Oversubscribed: Key Highlights

The IPO of Northern Arc Capital Ltd saw a subscription of 20.15 times on the third day, with various investor categories contributing to the oversubscription. The Rs 777-crore offer, combining fresh equity shares and an Offer For Sale, aims to meet the company's future capital needs for lending.

The initial public offer (IPO) of non-bank financial institution Northern Arc Capital Ltd witnessed a remarkable 20.15 times subscription by the third day of bidding on Wednesday.

The share sale resulted in bids for 43,27,38,471 shares against 2,14,78,290 shares on offer, according to NSE data.

Non-institutional investors' portion saw 50.76 times subscription, while the category for Retail Individual Investors (RIIs) received 18.94 times subscription. Qualified Institutional Buyers (QIBs) showed 31 percent subscription.

Northern Arc Capital announced on Friday that it has raised Rs 229 crore from anchor investors.

The Rs 777-crore IPO of the Chennai-based company is set to conclude on September 19, with the price band fixed between Rs 249-263 per share. The IPO includes a fresh issue of equity shares worth Rs 500 crore and an Offer For Sale (OFS) of up to 1,05,32,320 equity shares, aggregating Rs 277 crore, at the upper end of the price band.

The shares in the OFS are offered by Leapfrog Financial Inclusion India (II) Ltd, Accion Africa-Asia Investment Company, Eight Roads Investments Mauritius II Ltd, Sumitomo Mitsui Banking Corporation, 360 ONE Special Opportunities Fund (formerly known as IIFL Special Opportunities Fund), and Dvara Trust.

Proceeds from the fresh issue will be used to meet the company's future capital requirements for onward lending. Registered with the RBI as a systemically important, non-deposit-taking non-bank finance company (NBFC), Northern Arc has been active in the financial inclusion space for over a decade.

Northern Arc stands as a leading diversified NBFC in India, offering a variety of services across sectors, products, geographies, and borrower segments, providing credit access to under-served households and businesses through Originator Partners.

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

(With inputs from agencies.)