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 to the issue.