Northern Arc Capital 2025 Mobilises Rs 229 Crore From Anchor Investors In Front of IPO: Northern Arc Capital, a prominent non-banking financial company (NBFC), has successfully mobilized ₹229 crore from anchor investors ahead of its upcoming IPO. The company is set to launch its initial public offering (IPO) on September 16, 2025, with the subscription window open until September 19, 2025. The IPO, which includes both a fresh issue and an offer for sale (OFS), aims to raise ₹777 crore. The shares have been allocated at ₹263 each to various institutional investors, including major names like SBI General Insurance and Goldman Sachs (Singapore) Pte.
Northern Arc Capital 2025
Northern Arc Capital’s IPO is significant as it marks the company’s entry into the public markets, reflecting its robust financial health and strategic growth. The pricing band for the IPO has been set between ₹249 and ₹263 per equity share, positioning the company attractively against industry peers with a lower price-to-earnings ratio. The company plans to use the funds to bolster its capital base for future lending needs, reinforcing its commitment to financial inclusion and expanding its impact across underserved sectors.
Northern Arc Capital IPO Details
Northern Arc Capital’s IPO is poised to launch with a substantial offering aimed at raising ₹777 crore. The IPO, scheduled from September 16 to September 19, 2025, includes a fresh issue of ₹500 crore and an offer for sale worth ₹277 crore. The price band for the shares is set between ₹249 and ₹263, with a face value of ₹10 per share. The issue has been allocated at the upper end of this range to anchor investors, including prominent institutions like SBI General Insurance and Goldman Sachs. The funds raised will support Northern Arc’s expansion and strengthen its capital base for future lending.
IPO Structure and Price
| Component |
Details |
| Total Issue Size |
₹777 crore |
| Fresh Issue |
₹500 crore |
| Offer for Sale (OFS) |
Up to ₹277 crore |
| Price Band |
₹249 – ₹263 per share |
| Face Value |
₹10 per share |
| Price to Earnings Ratio |
11.24 times (upper end) |
Anchor Investors
| Investor |
Investment Amount |
| SBI General Insurance |
Part of ₹229 crore |
| SBI Life Insurance |
Part of ₹229 crore |
| Reliance General Insurance |
Part of ₹229 crore |
| Kotak Mahindra Life Insurance |
Part of ₹229 crore |
| Goldman Sachs (Singapore) |
Part of ₹229 crore |
| Societe Generale |
Part of ₹229 crore |
| Quant Mutual Fund |
Part of ₹229 crore |
IPO Schedule
| Event |
Date |
| IPO Open Date |
September 16, 2025 |
| IPO Close Date |
September 19, 2025 |
| Basis of Allotment Date |
September 20, 2025 |
| Refunds Initiation Date |
September 23, 2025 |
| Credit to Demat Account |
September 23, 2025 |
| Listing Date |
September 24, 2025 |
Allocation Breakdown
| Investor Category |
Percentage Allocation |
| Qualified Institutional Buyers (QIB) |
Up to 50% |
| Non-Institutional Investors (NII) |
At least 15% |
| Retail Investors |
At least 35% |
| Employee Reservation |
Up to 590,874 equity shares at ₹24 discount |
Financial Performance
| Metric |
FY 2025 |
FY 2023 |
| Profit After Tax (PAT) |
Increased by 31% |
Previous year PAT |
| Revenue |
Increased by 45% |
Previous year revenue |
Comparison with Peers
| Company |
P/E Ratio |
| Five-Star Business Finance |
26.76 |
| SBFC Finance |
36.64 |
| CreditAccess Grameen |
13.12 |
| Fusion Micro Finance |
6.21 |
| Bajaj Finance |
30.93 |
| Cholamandalam Investment |
36.22 |
| Poonawalla Fincorp |
17.81 |
| MAS Financial Services |
18.55 |
Use of Proceeds
| Purpose |
Amount (₹ crore) |
| Future Capital Needs |
To be utilized for lending expansion |
IPO Management
| Lead Managers |
Details |
| ICICI Securities Ltd |
Book-running lead manager |
| Axis Bank Ltd |
Book-running lead manager |
| Citigroup Global Markets |
Book-running lead manager |
| Registrar |
Kfin Technologies Ltd |
Company Overview
| Aspect |
Details |
| Company |
Northern Arc Capital |
| Business Model |
Financial inclusion and credit access |
| Years in Operation |
Over a decade |
| Financing Facilitated |
Over ₹1.73 trillion |
| Impact |
Over 101.82 million people |
Employee Reservation
| Discount |
₹24 per share |
| Shares Reserved |
Up to 590,874 equity shares |
Northern Arc Capital Summary
Northern Arc Capital’s IPO has generated considerable interest, evidenced by the ₹229 crore raised from anchor investors. The IPO, scheduled to open on September 16, 2025, offers shares within a price band of ₹249 to ₹263. The company’s strong financial performance and strategic plans for capital utilization underscore its growth potential. Investors can look forward to a comprehensive subscription process, with significant allocations for institutional and retail investors alike.
