Northern Arc picks ICICI Securities to manage ₹2K cr IPO
₹2,000 crore initial public offering, according to two people aware of its plans. “It is also likely to appoint Citi and Axis Capital as managers for the issue," one of the two people said, seeking anonymity. The company had filed its draft prospectus with Securities and Exchange Board of India (Sebi) in July 2021, but subsequently shelved its plans citing market conditions.
Back then, it had appointed IIFL Securities, Axis Capital, SBI Capital Markets and Credit Suisse Securities for the fresh issue of ₹300 crore and offer for sale of up to 36,520,585 equity shares. “The company may file revised draft prospectus with Sebi by November-end and is targeting a public listing by end of the current financial year," he added. Last year, it raised $50 million via a bond issuance from FMO, the Dutch entrepreneurial development bank.
The company is backed by equity investors, including Sumitomo Mitsui Banking Corp (fourteenth among largest global banks), LeapFrog, Accion, Augusta Investments (Affirma Capital), IIFL, Dvara Trust, and Eight Roads (the proprietary arm of Fidelity). Queries emailed to spokespersons of Northern Arc, Axis Capital, Citi, and ICICI Securities did not elicit any response. Northern Arc offers loans to micro, small and medium business, households, financial institutions, self-employed, entrepreneurs, and emerging businesses.
Using technology and data, it provides diverse solutions to meet credit the requirements of emerging segments as well as small businesses. Along with its asset management arm, which manages seven alternative investment funds, it has assets of over ₹9,000 crore under management. The company posted 33% year-on-year growth in consolidated net profit in FY23 to ₹242 crore against ₹182 crore
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