Northern Arc Capital Limited ('Northern Arc' or the 'Company'), 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 Northern Arc Capital Limited (the "company" or the comprising a fresh issue aggregating up to ₹3,000 million 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 (II) Ltd, up to 2,310,191 equity shares by Accion Africa-Asia Investment Company, up to 7,076,499 equity shares by Augusta Investments II PTE. Ltd., up to 4,083,812 equity shares by Eight Roads Investments Mauritius II Limited, 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% 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 ₹1,500 million, prior to filing of the Red Herring Prospectus with the ROC (the "Pre-IPO placement").
Registered with the RBI as a systemically important, the Company is a non-deposit taking non-banking finance company (NBFC). They have been operating in the financial inclusion space for over a decade. Northern Arc is a leading player amongst India's diversified NBFCs, with a business model diversified across offerings, sectors, products, geographies and borrower segments. They provide access to credit to under-served households and businesses directly and indirectly through Originator Partners. Northern Arc operates with a risk management framework that uses a combination of proprietary quantitative data analytics based on over 22 million unique data points and qualitative field-level insights that aid credit assessment and monitoring. Their proprietary integrated technology system called 'Nimbus by Northern Arc™' enables the company to do this efficiently at scale.
The Net Proceeds from the Fresh Issue are proposed to be utilized towards augmenting the Company's 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.