Northern Arc’s IPO Opens On Sep 16

Mumbai: Northern Arc Capital Ltd, a leading retail loan provider to underserved households and businesses in Indiais, is set to commence its initial public offering (IPO) on Monday (September 16). The company will offer up to 50 million equity shares to the public, including both a fresh issue and an offer for sale by existing shareholders.

The price band for the issue has been fixed at Rs249-Rs263 per equity share. Eligible employees will be offered a discount of Rs24 per share. Investors can bid for a minimum of 57 shares and in multiples thereof. Eligible employees will have the opportunity to purchase up to 590,874 equity shares. All bidders, except anchor investors, are required to use the Application Supported by Blocked Amount (ASBA) process. Anchor investors cannot participate in the IPO through the ASBA process.

The firm intends to utilize the proceeds from the IPO to meet its future capital requirements, primarily for lending in sectors such as MSME financing, microfinance, consumer finance, vehicle finance, affordable housing finance, and agricultural finance. This will also help the company comply with the Reserve Bank of India’s capital adequacy regulations.