Exciting news in the financial world as Northern Arc, a renowned financial services platform, has recently announced that it has received approval from SEBI to raise funds through an initial public offering (IPO).
After submitting the draft red herring prospectus (DRHP) to SEBI in February, Northern Arc is gearing up for an IPO that will include a fresh issuance of equity shares amounting to ₹500 crore and an offer-for-sale of 2.1 crore equity shares by existing investors.
Notable entities participating in the offer-for-sale include Leapfrog Financial Inclusion India (II) Ltd, Accion Africa-Asia Investment Company, Augusta Investments II Pte Ltd, Eight Roads Investments Mauritius II Ltd, Dvara Trust, and IIFL Special Opportunities Fund.
Having filed preliminary IPO papers with SEBI in January, Northern Arc Capital received its observation letter on July 12, marking a significant milestone in the IPO process.
The proceeds from the fresh issue will be utilized to meet the company’s future capital requirements for onward lending, as outlined in the draft papers.
As a RBI registered systemically important non-deposit-taking NBFC, Northern Arc has been at the forefront of financial inclusion for over a decade. With a diverse business model spanning various sectors and geographies, the company provides access to credit for underserved households and businesses through its innovative offerings and Originator Partners.
Interestingly, Northern Arc Capital had previously filed draft papers for an IPO in July 2021 and received SEBI’s approval in September of the same year. However, the launch was postponed at that time.
Another company, Shree Tirupati Balajee Agro Trading Company Ltd, also received SEBI’s observations on July 12 to proceed with its IPO after filing draft papers in March.
