The initial public offer of non-bank financial institution Northern Arc Capital received 2.86 times subscription on the first day of the share sale on Monday.
The share sale received bids for 6,14,36,709 shares against 2,14,78,290 shares on offer, as per NSE data.
The quota for non-institutional investors fetched 4.47 times subscription while the portion for Retail Individual Investors (RIIs) got subscribed 3.86 times. The Qualified Institutional Buyers (QIBs) part received 2 per cent subscription.
Northern Arc Capital on Friday said it has collected Rs 229 crore from anchor investors.
The Rs 777-crore IPO of the Chennai-based company will conclude on September 19. The price has been fixed in the range of Rs 249-263 per share.
The IPO is a combination of a fresh issue of equity shares valued at Rs 500 crore and an Offer For Sale (OFS) of up to 1,05,32,320 equity shares worth Rs 277 crore, at the upper end of the price band, by investor shareholders. This aggregates the issue size to Rs 777 crore.
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Those offering shares through the OFS are Leapfrog Financial Inclusion India (II) Ltd, Accion Africa-Asia Investment Company, Eight Roads Investments Mauritius II Ltd, Sumitomo Mitsui Banking Corporation, 360 ONE Special Opportunities Fund (formerly known as IIFL Special Opportunities Fund), and Dvara Trust.
Proceeds from the fresh issue would be used to meet future capital requirements of the company towards onward lending.
Registered with the RBI as a systemically important, the company is a non-deposit-taking non-banking finance company (NBFC) and has been operating in the financial inclusion space for over a decade.
Northern Arc is a leading player amongst the country's diversified NBFCs, with a business model diversified across offerings, sectors, products, geographies and borrower segments. It provides access to credit to under-served households and businesses directly and indirectly through Originator Partners.
ICICI Securities, Axis Capital and Citigroup Global Markets India are the book-running lead managers to the issue.