Northern Arc Capital files draft documents with SEBI ahead of IPO

Our Bureau Chennai | Updated on July 16, 2021

The NBFC’s IPO will comprise a fresh issue of ₹300 crore

In a move closer to public listing, Northern Arc Capital (formerly IFMR Capital) has filed its draft documents with the Securities and Exchange Board of India (SEBI) on Friday.

According to the Draft Red Herring Prospectus (DRHP), the IPO of the Chennai-based NBFC will comprise a fresh issue of ₹300 crore and an offer for sale of up to 3,65,20,585 equity shares by the existing shareholders.

The selling shareholders in the OFS include LeapFrog, Accion, Augusta, Eight Roads, Dvara Trust, IIFL Special Opportunities Fund, IIFL Special Opportunities Fund– Series II, IIFL Special Opportunities Fund– Series III, IIFL Special Opportunities Fund–Series IV, and IIFL Special Opportunities Fund–Series V.

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.

20 per cent y-o-y AUM growth can be sustained in FY22 also: Kshama Fernandes, MD & CEO, Northern Arc Capital

The company said it may also consider issuing equity shares on a private placement basis for cash consideration aggregating up to ₹150 crore, prior to filing of the Red Herring Prospectus with the ROC.

Registered Non-Deposit taking Systemically Important (NBFC-ND-SI) with the RBI, Northern Arc is a leading debt platform focussed on catering to the diverse credit requirements of under-served households and businesses in India.

With a diversified business model across offerings, sectors and products,, Northern Arc provides access to credit to under-served households and businesses both directly as well as through Originator Partners.

Northern Arc launches alternative investment platform for retail investors

Since its inception in 2009, the company has cumulatively raised over ₹95,000 crore and executed over 900 structured finance transactions. It has also obtained over ₹2,800 crore in investor commitments across nine high performing funds and gathered over 22 million data points on customer repayment behaviour. Its credit exposure (directly or indirectly) has spread across 657 districts in 28 States and seven Union Territories.

The company will use the net proceeds from the fresh issue towards augmenting its capital base to meet future capital requirements.

Axis Capital Limited, Credit Suisse Securities (India) Private Limited, IIFL Securities Limited and SBI Capital Markets Limited are the Book Running Lead Managers to the issue.

Published on July 16, 2021

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