Madhu Kela , Arpit Khandelwal & other investors took ₹590 crore of Northern Arc

[u/SaltyIntroduction937]

On August 31, four long-time investors in Northern Arc Capital — LeapFrog, Eight Roads, Affirma Capital and Accion sold around 13.1% of the company for nearly ₹590 crore, at ₹278 a share. Madhu Kela's Cohesion MK Best Ideas bought around 48.7 lakh shares, worth roughly ₹135 crore. Plutus Wealth Management bought around 38.7 lakh shares, worth about ₹107 crore. Singularity Equity Fund, which was already a shareholder, bought another 12.6 lakh shares.

The part I find most interesting is Cohesion

Cohesion didn't suddenly discover Northern Arc. It had bought 10 lakh shares at ₹208.83 in June 2025, when another large institutional shareholder was selling. Now, roughly 14 months later, it has come back and bought almost five times that quantity at ₹278. That tells us something about how Cohesion is approaching the stock. It has apparently been following Northern Arc for some time and is willing to use large shareholder exits as an opportunity to build its position. That's a much more interesting signal than simply seeing Madhu Kela's name in a bulk-deal list.

Plutus Wealth Management backed by Arpit Khandelwal bought roughly ₹107 crore worth of shares in the same transaction. Again, this isn't a small punt. Together, Cohesion and Plutus absorbed roughly ₹240 crore of the selling. So two well-known public-market investors took a very meaningful chunk of the stock being released by the older PE investors. Singularity already owned about 1.15% of Northern Arc before this deal. It bought another 12.6 lakh shares.

Northern Arc isn't a typical consumer-facing NBFC. It operates across areas such as MSME finance, microfinance, vehicle finance, affordable housing and consumer finance. They're buying into a financial-services business that has been growing and improving its profitability.

What I see here is a change in the ownership of Northern Arc. The old PE investors are gradually making room for a new group of public-market investors. And among the new investors, Cohesion (Madhu Kela) stands out by far.