NE BUSINESS BUREAU
CHENNAI/AHMEDABAD, SEPT 11
Northern Arc Capital Limited on Wednesday announced it has set a price band of ₹249-263 per share for its upcoming initial public offering (IPO), which will be open for subscription between Monday, September 16 and Thursday, September 19.
The IPO includes a fresh issue worth ₹500 crore and an offer for sale (OFS) of up to 1.05 crore shares by existing shareholders and promoters, valued at ₹277 crore at the upper price band.
- Bid Offer will open on Monday, September 16, 2024 and close on Thursday, September 19, 2024
- The Anchor Investor Bid / Offer Period shall be Friday, September 13, 2024
- Bids can be made for a minimum of 57 Equity Shares and in multiples of 57 Equity Shares thereafter.
- A discount of ₹24 per Equity Share is being offered to Eligible Employees bidding in the Employee Reservation Portion.
The total issue size is ₹777 crore. Anchor bidding will commence on September 13.
A discount of ₹24 per Equity Share is being offered to Eligible Employees bidding in the Employee Reservation Portion. 50 per cent of the net offer shall be reserved for qualified institutional bidders, while non-institutional investors will have 15 per cent of the allocation in the net offer. Retail investors will have 35 per cent of the net offer reserved for them.
Bids can be made for a minimum of 57 Equity Shares and in multiples of 57 Equity Shares thereafter.
The Company intends to utilize the Net Proceeds to meet its future capital requirements towards onward lending in its focused sectors, namely, MSME financing, MFI, consumer finance, vehicle finance, affordable housing finance and agricultural finance, and to ensure compliance with the RBI regulations on capital adequacy, for Financial Year 2025.
Chennai-based Northern Arc Capital was founded in 2009 and offers retail loans to underserved households and businesses in India. Its business model is diversified across different offerings, sectors, products, geographies, and borrower categories. It has facilitated over ₹1.73 lakh crore worth of financing, reaching out to over 10.18 crore people across India, as of March 31, 2024.
For the financial year ended on March 31, 2024, Northern Arc Capital reported a net profit of ₹317.69 crore with a revenue of ₹1,906.03 crore. The company had clocked a bottomline of Rs 242.21 crore with a revenue of ₹1,311.2 crore for the fiscal year 2022-23.
The Equity Shares are being offered through the Red Herring Prospectus of the Company dated September 9, 2024 filed with the Registrar of Companies, Tamil Nadu at Chennai, India.
Shares of the company shall be listed on both BSE and NSE, with September 24, Tuesday as the tentative date of listing. ICICI Securities, Axis Capital, and Citigroup Global Markets India are acting as book running lead managers to the issue. KFin Technologies Limited is the official registrar to the issue.
