Chennai-based financial services provider Northern Arc Capital has secured Rs 229 crore from anchor investors as part of its preparation for an upcoming Initial Public Offering (IPO). The company, which specializes in lending to under-served businesses and individuals, allocated 87.02 lakh shares at Rs 263 each to a select group of 15 anchor investors, as detailed in a circular by the Bombay Stock Exchange.
Prominent investors in this pre-IPO round include SBI Life Insurance, SBI General Insurance, and Goldman Sachs, among others. The move underscores Northern Arc’s efforts to strengthen its financial position ahead of the IPO, which is set to open on September 16, 2024. The total IPO size is estimated at Rs 777 crore, with Rs 500 crore comprising a fresh issue and the remaining offered through an Offer for Sale (OFS) by existing shareholders.
The capital raised will largely be directed toward Northern Arc’s primary lending operations, ensuring sufficient liquidity for future growth and expansion, particularly in providing credit to small and medium enterprises (SMEs) and underserved segments of society. The IPO proceeds are expected to bolster Northern Arc’s already robust lending platform, further enhancing its presence in the financial services sector.
The company has been a key player in India’s non-banking financial sector, offering customized credit solutions across industries and fostering financial inclusion. By raising additional capital through the IPO, Northern Arc aims to scale its operations and tap into new growth opportunities, solidifying its role in providing financial access to underserved markets.
This funding round marks a significant milestone for Northern Arc as it gears up to go public.
