Mumbai Chemspec Chemicals Limited and Northern ARC Capital Limited have received approval from the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
Both the firms had filed draft papers with SEBI in July. NS ₹Chemspec Chemicals’ 700 crore IPO consists of a net offer for sale (OFS) by its existing shareholders and promoters. OFS is sold ₹233.40 crore by Bhaichand Amoluk Consultancy Services LLP while Mitul Vora and Rishabh Vora will offer shares worth Rs. ₹233.30 crores.
Chemspec Chemicals is a globally leading manufacturer of critical additives for FMCG ingredients used in skin and hair care products and intermediates for pharmaceutical APIs used in anti-hypertension drugs. The company has a manufacturing facility at Taloja. As of March 2021, its facility had a production capacity of 6,000 tpa.
Northern ARC Capital IPO involves a new issue of ₹300 crores and OFS of up to 36.52 million shares by its existing shareholders and promoters.
An OFS includes 8.99 million shares by Leapfrog Financial Inclusion India, 4.08 million shares by Eight Rhodes Investments Mauritius II, 3.86 million shares by Trust, up to 5.04 million shares by IIFL Special Opportunities Fund, up to 1.23 million shares by LeapFrog Financial Inclusion India, and up to 1.23 million shares. Up to 0.54 million shares of IIFL Special Opportunities Fund Series 2, 0.54 million shares of IIFL Special Opportunities Fund Series 3, 1.86 million shares of IIFL Special Opportunities Fund Series 4 and up to 1.52 million shares of IIFL Special Opportunities Fund Series 5.
The proceeds of the issue will be used to increase its base capital. As of March 2021, it had a CRAR of 28.89%, with Tier-I capital at 27.62%.
Northern ARC Capital is a leading player amongst India’s diverse NBFCs with a business model diversified across offerings, sectors, products, geographies and borrower segments. It provides access to credit to disadvantaged families and businesses, directly and indirectly, through its promoter partners.
As of March 2021, the lender had assets under management (AUM), including its investments in AIFs ₹5,221 crore while it had credit exposure, directly or indirectly, spread over 657 districts of 28 states and seven union territories.
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