Northern Arc Capital submitted preliminary documents to SEBI to attain ₹500 cr for IPO

In order to obtain money through an initial public offering (IPO), Northern Arc Capital Ltd. has submitted preliminary documents to Securities and Exchange Board of India (SEBI), the capital markets regulator. According to the draft red herring prospectus (DRHP), the non-banking financial company (NBFC) will combine an offer for sale (OFS) of up to 2.1 crore equity shares by investor shareholders with a fresh issue of equity shares valued at ₹500 crore for its IPO.

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 are among the companies that are selling shares through the OFS.

The company’s future capital needs for further lending will be covered by the proceeds of the new issue. The company, which has been in the financial inclusion business for more than ten years, is a non-banking, non-deposit taking financial company that is registered with the Reserve Bank of India (RBI).

Among the nation’s major diverse NBFCs, Northern Arc has a business model that is varied in terms of offers, sectors, products, locations, and borrower categories. Through originator partners, it offers underserved households and businesses direct and indirect access to finance.

Stated differently, the goal of the NBFC is to give organizations that support households and businesses who are financially excluded dependable access to debt capital.