The initial public offering (IPO) comprises fresh issue of equity shares worth Rs 300 crore and an offer-for-sale of up to 36,520,585 equity shares by shareholders, the draft red herring prospectus (DRHP) filed with Sebi showed. Registered with the RBI as a systemically important, non-deposit taking non-banking finance company (NBFC), it has been operating in the financial inclusion space for over a decade. Those offering shares through the offer-for-sale include 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. Northern Arc Capital may consider issuing equity shares on a private placement basis for cash consideration aggregating up to Rs 150 crore prior to the filing of the red herring prospectus with registrar of companies (RoC).

Proceeds from the fresh issue would be used towards augmenting the company’s capital base to meet future capital needs. Northern Arc is a leading player amongst the country’s diversified NBFCs, with a business model diversified across offerings, sectors, products, and borrower segments.