Northern Arc Capital, a Chennai-based non-banking financial company (NBFC), has successfully raised Rs 229 crore from prominent anchor investors as it gears up for its upcoming initial public offering (IPO). The funding round saw the allocation of 87.02 lakh equity shares to 15 entities at Rs 263 per share, which is the upper limit of the price band, according to a circular posted on the Bombay Stock Exchange (BSE).
The list of distinguished anchor investors includes Reliance General Insurance Company, Goldman Sachs (Singapore) Pte, Kotak Mahindra Life Insurance Company, SBI General Insurance Company, SBI Life Insurance Company, Societe Generale, and Quant Mutual Fund.
With the fresh capital infusion, Northern Arc Capital aims to meet its future capital requirements, with a specific focus on onward lending. The company has been instrumental in providing credit to underserved households and businesses across India, with a diversified lending portfolio that covers sectors like microfinance, MSME finance, consumer finance, vehicle finance, and agriculture finance.
Earlier this year, Northern Arc received a significant boost when the Dutch entrepreneurial development bank FMO invested $75 million in the company through non-convertible debentures. In April, the World Bank’s International Finance Corporation (IFC) also provided $80 million in funding. These investments highlight Northern Arc’s strong track record of attracting global investors.
About Northern Arc Capital
Founded in 2008 by Ashish Mehrotra, Northern Arc Capital is a diversified financial services platform dedicated to addressing the varied retail credit needs of underserved households and businesses in India. Through its comprehensive financial solutions, Northern Arc plays a vital role in bridging the credit gap in the Indian economy, supporting sectors that are crucial for inclusive growth.
