Northern Arc Capital Limited (NSE/BSE: NORTHARC) has witnessed a significant change in its shareholding structure as Catalyst Trusteeship Limited released 40,55,000 equity shares from pledge. The shares, previously held as security for Non-Convertible Debentures (NCDs) issued by Dvara Holdings, were released back to the latter in multiple tranches between April and September 2025.

Impact on Shareholding

The release of shares has resulted in a notable decrease in Catalyst Trusteeship's encumbered shareholding in Northern Arc Capital. Prior to the release, Catalyst Trusteeship held 5.14% of the total share capital, which has now reduced to 2.63%.

Release Details

The share release was executed across several dates:

• April 8, 2025
• May 2, 2025
• June 11, 2025
• July 1, 2025
• September 22, 2025

Catalyst Trusteeship Limited acted in its capacity as the Debenture Trustee for Dvara Holdings' debenture holders throughout this process.

Company Overview

Northern Arc Capital Limited, listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), has a total equity share capital of 16,14,11,836 shares, each with a face value of INR 10.00. The company's diluted share capital stands at 16,72,89,926 equity shares.

Regulatory Compliance

This transaction was disclosed in accordance with Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The disclosure, filed on September 24, 2025, provides transparency regarding the changes in substantial shareholding of Northern Arc Capital Limited.

Market Implications

While the release of pledged shares does not directly impact Northern Arc Capital's operations, it represents a significant shift in the company's shareholding pattern. Investors and market analysts may view this development as a positive sign, potentially indicating improved financial health for Dvara Holdings, which was able to secure the release of its pledged shares.

As Northern Arc Capital continues to navigate the financial landscape, stakeholders will likely keep a close eye on any further developments in its ownership structure and strategic direction.

Northern Arc Capital , a prominent financial services company, held its 17th Annual General Meeting (AGM) on August 25, where shareholders approved several significant resolutions that could shape the company's future growth and operations.

Key Approvals

The shareholders gave their nod to nine resolutions, including:

1. Increased Borrowing Powers: The company's borrowing limit has been raised to INR 15,000.00 crore, a move that could significantly enhance its financial flexibility.

2. Non-Convertible Debenture Issuance: Approval for issuing Non-Convertible Debentures up to INR 5,000.00 crore on a private placement basis, potentially strengthening the company's debt portfolio.

3. Asset Charge Creation: Authorization to create charges on company assets up to INR 15,000.00 crore, aligning with the increased borrowing powers.

4. ESOP Expansion: The Employee Stock Option Pool has been expanded by 4,71,209 options, bringing the total to 94,78,967 ESOPs, which could boost employee retention and alignment with company goals.

Corporate Governance and Leadership

The AGM also saw several decisions related to the company's leadership and governance:

• Appointment of Michael Jude Fernandes as a director liable to retire by rotation.
• Appointment of M/s. Alagar & Associates as Secretarial Auditors for a five-year term.
• Revision in remuneration for Non-Executive Independent Director P S Jayakumar.
• Approval of revised managerial remuneration for Managing Director Ashish Mehrotra.

Financial Statements

Shareholders adopted the audited standalone and consolidated financial statements, along with the reports of the Board of Directors and Auditors.

Shareholder Participation

The meeting, conducted through video conferencing due to ongoing health and safety considerations, saw participation from 58 shareholders. Out of a total of 109,684 shareholders as of the record date, this represents a small but engaged portion of the investor base.

Voting Results

All resolutions were passed with overwhelming majority, with most receiving over 99% votes in favor. The expanded ESOP plan and revisions in director remuneration saw slightly lower, but still strong, approval rates of around 99.3% and 99.2% respectively.

Northern Arc Capital's Chairman, P.S. Jayakumar, presided over the meeting and delivered an address highlighting the company's economic overview, performance, commitment to ESG & CSR, corporate governance, and future outlook.

These approvals signal Northern Arc Capital's ambitious plans for growth and its commitment to maintaining robust governance practices. The increased borrowing limit and debenture issuance approval, in particular, suggest that the company is positioning itself for significant expansion or investment opportunities in the near future.

Investors and market watchers will likely keep a close eye on how Northern Arc Capital utilizes these new financial capabilities and implements its expanded ESOP program in the coming months.