Northern Arc Capital IPO will open for subscription from 16 September 2024. The company aims for an issue size of ₹777 Cr through this IPO.
Company Overview
| Full name | Northern Arc Capital Limited |
| Sector | Finance |
| Industry | Finance – NBFC |
| Company Website | https://www.northernarc.com/ |
About Company
Northern Arc Capital is a diversified financial services platform established to meet the varied retail credit needs of under-served households and businesses across India. Since it entered into the financial inclusion space in 2009, the company has facilitated financing of over INR 1.73 trillion, impacting more than 101.82 million lives, created an ecosystem of 328 Originator Partners, 50 Retail Lending Partners, and 1,158 Investor Partners across India as of 31 March 2024. As of Fiscal Year 2024, the company had one of the lowest gross non-performing assets (GNPA) at 0.45% and net non-performing assets (NNPA) at 0.08%.
The company stands out as one of India’s leading diversified non-banking financial companies (NBFCs) regarding Assets under Management (AUM) as of 31 March 2024. Northern Arc Capital has honed its expertise in facilitating credit across targeted sectors in India, including micro, small, and medium enterprises (MSMEs) financing, microfinance (MFI), consumer finance, vehicle finance, affordable housing finance, and agricultural finance. As of 31 March 2024, the company had 2,695 permanent employees.
Northern Arc Capital’s quantitative analysis is grounded in over 35.17 million data points, comprising (a) loan pools the company has assessed and invested in on behalf of Originator Partners from Investor Partners through securitizations and direct assignments as of 31 March 2024, and (b) more than 18.58 million Direct to Customers Lending loans it has disbursed as of the same date.
The Objectives of the Issue
- The company proposes to utilize the Net Proceeds to meet future capital requirements toward onward lending.
Northern Arc Capital IPO Timetable
| IPO Opening date | 16 September 2024 |
| IPO Closing | 19 September 2024 |
| Basis of Allotment | 20 September 2024 |
| Initiation Refund | 23 September 2024 |
| Credit to Demat Account | 23 September 2024 |
| Listing Date | 24 September 2024 |
Northern Arc Capital IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹777 Cr – 29,543,727 shares |
| Fresh Issue | ₹500 Cr – 19,011,407 shares |
| Offer for sale | ₹277 Cr – 10,532,320 shares |
| Face value | ₹10 per share |
| Price Band | ₹249 to ₹263 per share |
| Lot size | ₹10 per share |
| Employee Discount | ₹24 per share |
| Shareholding pre-issue | 142,314,010 |
| Shareholding post-issue | 161,325,417 |
| Listing Exchange | BSE & NSE |
Northern Arc Capital IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 57 | ₹14,991 |
| Retail (Max) | 13 | 741 | ₹194,883 |
| S-HNI (Min) | 14 | 798 | ₹209,874 |
| S-HNI (Max) | 66 | 3,762 | ₹989,406 |
| B-HNI (Min) | 67 | 3,819 | ₹1,004,397 |
Northern Arc Capital Offer Documents
- Northern Arc Capital IPO DRHP
- Northern Arc Capital IPO addendum to DRHP
- Northern Arc Capital IPO RHP
Northern Arc Capital IPO Reservation Details
| Investor Category | Shares Offered |
|---|---|
| Anchor Investor Shares Offered | 87,02,031 (30%) |
| QIB Shares Offered | 58,01,354 (20%) |
| NII (HNI) Shares Offered | 43,51,016 (15%) |
| bNII > ₹10L | 29,00,678 (10%) |
| sNII < ₹10L | 14,50,338 (5%) |
| Retail Shares Offered | 1,01,52,384 (35%) |
| Total Shares Offered | 2,90,06,785 (100%) |
Northern Arc Capital Financial Performance
| FY 2022 | FY 2023 | FY 2024 | |
| Revenue | 909.54 | 1,304.97 | 1,890.08 |
| Expenses | 668.16 | 988.10 | 1,484.83 |
| Net income | 181.94 | 242.21 | 317.69 |
| Margin (%) | 20.00 | 18.56 | 16.81 |
Northern Arc Capital Valuations & Margins
| FY 2022 | FY 2023 | FY 2024 (Pre Issue) | FY 2024 (Post-Issue)* | |
| EPS | 12.79 | 17.02 | 22.33 | 19.70 |
| PE Ratio | – | – | 11.15 – 11.78 | 12.64 – 13.35 |
* Calculated on the basis of annualized Profits After Tax for FY 2024
| FY 2022 | FY 2023 | FY 2024 | |
| RONW (%) | 9.92 | 11.76 | 13.32 |
| NAV | 122.21 | 137.41 | 162.64 |
| EBITDA (%) | 73.51 | 68.26 | 61.56 |
| Debt/Equity | 3.27 | 3.40 | 3.90 |
Company Promoters
- Does not have an Identifiable Promoter
Promoter Holding
| Pre Issue Share Holding | – |
| Post Issue Share Holding | – |
Northern Arc Capital Offer GMP Update
| Date | Day-wise IPO GMP | Kostak | Subject to Sauda |
| 20 September 2024 | 165 | – | 6,000 |
| 19 September 2024 | 180 | – | 6,800 |
| 18 September 2024 | 200 | – | 6,900 |
| 17 September 2024 | 165 | – | 6,700 |
| 16 September 2024 | 150 | – | 6,600 |
Northern Arc Capital IPO Subscription Update
| Category | QIB | NII | Retail | Employee | Total |
|---|---|---|---|---|---|
| Shares Offered | 58,48,056 | 45,11,808 | 1,05,27,552 | 5,90,874 | 2,14,78,290 |
| 19 Sep 2024 | 240.79 | 142.41 | 31.08 | 7.33 | 110.91 |
| 18 Sep 2024 | 0.31 | 50.80 | 18.97 | 4.32 | 20.18 |
| 17 Sep 2024 | 0.20 | 21.72 | 10.84 | 2.25 | 9.99 |
| 16 Sep 2024 | 0.02 | 4.48 | 3.87 | 0.92 | 2.87 |
Northern Arc Capital – Comparison With Listed Peers
| Company | PE ratio | EPS | RONW (%) | NAV | Revenue (Cr.) |
| Northern Arc Capital | 13.35 | 19.70 | 13.32 | 162.64 | 1,890.08 |
| Five-Star Business Finance | 26.46 | 28.39 | 16.09 | 177.68 | 2,182.85 |
| SBFC Finance | 36.64 | 2.30 | 8.53 | 25.87 | 1,018.64 |
| CreditAccess Grameen | 13.12 | 90.41 | 5.01 | 1,809.93 | 5,166.67 |
| Fusion Micro Finance | 6.21 | 50.11 | 17.74 | 281.93 | 2,316.73 |
| Bajaj Finance | 30.93 | 235.98 | 18.84 | 1,239.03 | 54,969.49 |
| Cholamandalam Investment and Finance | 36.22 | 41.06 | 17.46 | 233.26 | 19,139.62 |
| Poonawalla Fincorp | 17.81 | 21.63 | 20.60 | 105.44 | 3,109.01 |
| MAS Financial Services | 18.55 | 15.31 | 14.08 | 108.71 | 1,279.16 |
Northern Arc Capital IPO Allotment Status
Northern Arc Capital IPO Listing Details
| Listing Date | 24 September 2024 |
| BSE Scrip Code | Coming Soon |
| NSE Symbol | |
| ISIN | |
| Final Issue Price |
Listing Day Update
| Listing Exchange | BSE & NSE |
| Final Issue Price | Coming Soon |
| Open | |
| Low | |
| High | |
| Last Trade |
Northern Arc Capital IPO Lead Manager(s)
- ICICI Securities Limited
- Axis Bank Limited
- Citigroup Global Markets India Private Limited
Northern Arc Capital Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower – B, Plot 31 & 32, Gachibowli,
Financial District, Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana
Tel: +91 40 6716 2222
E-mail: nacl.ipo@kfintech.com
Website: www.kfintech.com
Northern Arc Capital Contact Details
Bajaj Housing Finance IPO allotment status will be available on KFin Tech website. Click on this link to get allotment status.
Northern Arc Capital IPO FAQs
How many shares in Northern Arc CapitalIPO are reserved for HNIs and retail investors?
The investors’ portion for QIB – 50%, NII – 15%, and Retail – 35%.
How to apply for a Northern Arc Capital Public Offer?
The best way to apply for Northern Arc Capital’s public offer is through Internet banking ASBA. You can also apply online through your stock broker using UPI. If you prefer to make paper applications, fill up an offline IPO form and deposit the same to your broker.
What is Northern Arc Capital IPO GMP today?
Northern Arc Capital IPO GMP today is ₹ 165 per share.
What is Northern Arc Capital kostak rate today?
Northern Arc Capital’s kostak rate today is ₹ NA per application.
What is Northern Arc Capital Subject to Sauda rate today?
Northern Arc Capital Subject to Sauda rate today is ₹ 6,000 per application.
Final thoughts
Northern Arc Capital IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. Study the company well and subscribe if you feel good about it. I hope this post will give you enough details to research the company fundamentally. learn well and make wise decisions.
Happy Investing
