• Source:JND
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Northern Arc Capital IPO Subscription Status:  The initial public offering (IPO) of non-bank financial firm Northern Arc Capital Ltd. was subscribed 9.98 times on the second day of bidding on Tuesday. According to the National Stock Exchange (NSE), bids were received for 21,43,97,349 shares against the total issue size of 2,14,78,290 shares.

The non-institutional investors' quota was subscribed 21.71 times, while the retail individual investor (RII) segment witnessed a subscription of 10.82 times. The portion earmarked for Qualified Institutional Buyers (QIBs) received 20 per cent of the subscription.
On Friday, Northern Arc Capital said it had raised Rs 229 crore from anchor investors. The Rs 777 crore IPO of the Chennai-based company will close on September 19. The price per share has been fixed at Rs 249-263.

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The investor shareholders are a combination of fresh issue of equity shares worth Rs 500 crore and an offer for sale (OFS) of 1,05,32,320 equity shares worth Rs 277 crore at the upper end of the price band. This brings the issue size to a total of Rs 777 crore.

Those offering shares through OFS are Leapfrog Financial Inclusion India (II) Limited, Action Africa-Asia Investment Company, Eight Roads Investments Mauritius II Limited, 360 One Special Opportunities Fund, and Sumitomo Mitsui Banking Corporation. The Personalities Fund, Trust, and Company are also offering shares through the OFS.

The proceeds from the fresh issue will be used to meet future capital needs of the company. Registered as Systemically Important with the RBI, the company is a non-deposit-taking non-banking finance company (NBFC) and has been operating in the financial inclusion space for over a decade.

Northern Arc is a leading player among the diversified NBFCs in the country, with business models diverse across offerings, sectors, products, geographies, and borrower sectors. It provides access to credit to under-served households and businesses directly and indirectly through Originator Partners.

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

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(With PTI's Input)

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