Northern Arc Capital plans for IPO, files DRHP with SEBI

Mumbai, Jul 17 Northern Arc Capital, a platform in the financial services sector set up primarily with the mission of catering to the diverse credit requirements of under-served households and businesses by providing efficient and reliable access to debt finance, filed its Draft Red Herring Prospectus (DRHP) with the market regulator SEBI for its Initial Public Offering (IPO).

The IPO comprises of issue of equity shares of the company comprising a fresh issue aggregating up to Rs 300 crore and an offer for sale of up to 36,520,585 equity shares of which up to 8,987,093 equity shares by Leapfrog Financial Inclusion India, up to 2,310,191 equity shares by Accion Africa-Asia Investment Company, up to 7,076,499 equity shares by Augusta Investments, up to 4,083,812 equity shares by Eight Roads Investments Mauritius II, up to 3,864,160 equity shares by Dvara Trust, up to 5,041,455 equity shares by IIFL Special Opportunities Fund, up to 1,231,710 equity shares by IIFL Special Opportunities Fund – Series 2, up to 541,805 equity shares by IIFL Special Opportunities Fund – Series 3, up to 1,862,128 equity shares by IIFL Special Opportunities Fund – Series 4 and up to 1,521,732 equity shares by IIFL Special Opportunities Fund – Series 5. The offer includes a reservation for subscription by eligible employees not exceeding 5 per cent of the Company's post-offer paid-up equity share capital.

The Company may, at its discretion, consider issuing equity shares on a private placement basis for cash consideration aggregating up to Rs 150 crore, prior to filing of the Red Herring Prospectus with the ROC.

The Net Proceeds from the Fresh Issue are proposed to be utilized towards augmenting the Company's capital base to meet future capital requirements.