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.

Northern Arc Capital Limited , a non-banking financial company (NBFC), has announced the complete utilization of its Initial Public Offering (IPO) proceeds, marking a significant milestone in its growth strategy. The company has successfully deployed ₹4,498.45 crore raised from its IPO towards meeting future capital requirements for onward lending.

IPO Utilization Details

According to the monitoring agency report for the quarter ended June 30, 2025, Northern Arc Capital has fully deployed the net proceeds from its IPO with no deviations from the stated objectives. The report, prepared by CRISIL Ratings Limited, confirms that all utilization was in line with the disclosures made in the offer document.

IPO Overview

Northern Arc Capital conducted its IPO from September 16-19, 2024, raising a total of ₹7,770 crore. This included a fresh issue of ₹5,000 crore and an offer for sale (OFS) of ₹2,770 crore. The company maintains ₹223.65 crore in its public offer account, representing unspent issue expenses.

Regulatory Compliance

As an NBFC registered with the Reserve Bank of India (RBI), Northern Arc Capital is subject to stringent capital adequacy regulations. The company is required to maintain a minimum Capital to Risk Weighted Assets Ratio (CRAR) of 15%, consisting of Tier I and Tier II capital. The utilization of IPO proceeds strengthens the company's capital base, enabling it to meet these regulatory requirements and support its lending activities.

Management Commentary

Prakash Chandra Panda, Company Secretary & Compliance Officer of Northern Arc Capital, stated in the regulatory filing, "This intimation is also available at the website of the Company at https://www.northernarc.com/statement-of-deviations ."

The successful deployment of IPO funds for onward lending positions Northern Arc Capital to expand its lending operations and capitalize on growth opportunities in the financial services sector. As the company moves forward with a strengthened capital base, investors and market watchers will be keen to observe its performance and impact on the NBFC landscape.

Northern Arc Capital's judicious use of IPO proceeds demonstrates its commitment to growth and regulatory compliance, setting a solid foundation for its future operations in the competitive NBFC sector.