Sebi approves IPOs of Northern Arc Capital and Shree Tirupati Balajee Agro Trading

The public offers of Northern Arc Capital and Shree Tirupati Balajee Agro Trading were approved by the capital markets regulator Sebi, according to the filings.

The regulator had issued observation letters to both the IPOs, which is equivalent to an approval.

Northern Arc Capital, which had filed its draft prospectus in February earlier this year, is planning an IPO, which is a combination of fresh equity sale worth Rs 500 crore and an offer for sale (OFS) of 2.1 crore shares.

The company proposes to utilize the net proceeds to meet future capital requirements towards onward lending.

Northern Arc is a diversified financial services platform set up primarily with the mission of catering to the diverse retail credit requirements of the under-served households and businesses in India.

Also Read: Sahaj Solar IPO booked 313 times so far on last day; GMP surges to 133%

The company has developed a domain expertise in enabling credit across the focused sectors in India, namely, micro, small and medium enterprises (MSMEs) financing, microfinance (MFI), consumer finance, vehicle finance, affordable housing finance and agricultural finance.

In the six-month period ending September 2023, Northern Arc reported total revenue from operations of Rs 838 crore and a profit of about Rs 150 crore.

The public offer of Tirupati Balajee Agro Trading comprises fresh equity issue 1.3 crore shares and an offer for sale of 36.4 lakh shares by promoter Binod Kumar Agarwal.

The company is engaged in the business of manufacturing and supply of flexible intermediate bulk container (FIBC) jumbo bag types. It also produces container liner bags, bags made from recycled PP (Post Industrial Recyclate), specialized PP woven bags, and BOPP printed small bags, catering to a diverse range of customer needs.

Net proceeds from the fresh issue are proposed to be utilised for repayment of debt, funding working capital requirements and other general corporate purposes.

ICICI Securities, Axis Capital and Citigroup Global Markets India are the book running lead managers to the issue.

PNB Investment Services is the lead manager to the IPO and Unistone Capital is the registrar.