Northern Arc Capital Limited files DRHP with SEBI for IPO. Northern Arc Capital Limited, a diversified financial services platform has filed Draft Red Herring prospectus with market regulator Security Exchange Board of India (SEBI). The company plans to raise funds via Initial Public Offerings through issue of equity share of face value Rs. 10 each comprising of fresh issue aggregating upto Rs. 500 crore (The “Fresh Issue”), and an Offer for Sale aggregating up to 21,052,629 equity shares (The “Offer for Sale”).
Northern Arc is a diversified financial services platform set up primarily with the mission of catering
to the diverse retail credit requirements of the under-served households and businesses in India.
Northern Arc has developed a domain expertise in enabling credit across the focused sectors in
India, namely, micro, small and medium enterprises (“MSMEs”) financing, microfinance (“MFI”),
consumer finance, vehicle finance, affordable housing finance and agricultural finance. Northern Arc
has been operating in the MSME, MFI and consumer finance sectors for over 13 years, 14 years and
eight years, respectively.
The Offer for Sale aggregating up to 21,052,629 equity shares, includes equity shares aggregating up
to 4,922,949 by LeapFrog Financial Inclusion India (II) Ltd; equity shares aggregating up to 1,265,476
by Accion Africa-Asia Investment Company, equity shares aggregating up to 4,254,744 by Augusta
Investments II Pte. Ltd; equity shares aggregating up to 2,237,030 by Eight Roads Investments
Mauritius II Limited (formerly known as FIL Capital Investments (Mauritius) II Limited); equity shares
aggregating up to 1,631,949 by Dvara Trust (represented by its corporate trustee, Dvara Holdings
(formerly known as Dvara Holdings Private Limited and as Dvara Trusteeship Services Private
Limited)); equity shares aggregating up to 5,000,000 by 360 ONE Special Opportunities Fund
(formerly known as IIFL Special Opportunities Fund); equity shares aggregating up to 107,696 by 360
ONE Special Opportunities Fund – Series 2 (formerly known as IIFL Special Opportunities Fund –
Series 2); equity shares aggregating up to 47,373 by 360 ONE Special Opportunities Fund – Series 3
(formerly known as IIFL Special Opportunities Fund – Series 3); equity shares aggregating up to
162,817 by 360 ONE Special Opportunities Fund – Series 4 (formerly known as IIFL Special
Opportunities Fund – Series 4); equity shares aggregating up to 133,595 by 360 ONE Special
Opportunities Fund – Series 5 (formerly known as IIFL Special Opportunities Fund – Series 5); equity
shares aggregating up to 5,481 by 360 ONE Special Opportunities Fund – Series 6 (formerly known as
IIFL Special Opportunities Fund – Series 6); equity shares aggregating up to 132,299 by 360 ONE
Special Opportunities Fund – Series 7 (formerly known as IIFL Special Opportunities Fund – Series 7);
equity shares aggregating up to 1,151,220 by Sumitomo Mitsui Banking (collectively referred to as
the “selling shareholders”, and each individually, as a “selling shareholder” and such offer for sale
of equity shares by the selling shareholders, the “offer for sale”).
Northern Arc Capital Limited, proposes to utilize the Net Proceeds to meet future capital requirements towards onward lending. ICICI Securities Limited, Axis Capital Limited and Citigroup Global Markets India Private Limited are the Book Running Lead Managers.
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