Non-banking financial company Northern Arc Capital, previously known as IFMR Capital, is in the process of raising funds from private equity players ahead of its Initial Public Offering(IPO), sources told CNBC-TV18.
The firm is looking to raise about Rs 600 crore from investors in the pre-IPO round, said the sources. It is preparing for IPO in the next financial year, sources added.
According to sources, around 10 private equity players have shown interest for the fund-raise and bids are likely to be invited from Wednesday.
Credit Suisse, Axis Capital and ICICI Securities have been appointed as the bankers for the deal.
Northern Arc Capital is backed by PE players like Standard Chartered Private Equity, Leapfrog and Fidelity International, which hold about 55 percent stake in the company and the deal will see some investors partially diluting the stake.
The funds will also be used to strengthen the business and support growth.
However, the company is yet to comment on the story.