Northern ARC Capital IPO
IPO Listing Details
- Listing Date
24 Sep 2024
- Listing Price
₹351.00
- Listing Change
33.46%
- Last Traded Price
₹236.42
IPO Details
- Open Date
16 Sep 2024
- Close Date
19 Sep 2024
- IPO
Price Range
₹ 249 to ₹ 263
- IPO
Size
₹ 777.00 Cr
- Listing Exchange
BSE, NSE
- Listing Date
24 Sep 2024
IPO Timeline
Northern ARC Capital IPO Subscription Status
| Date | QIB | NII | Retail | TOTAL |
|---|---|---|---|---|
| 16-Sep-24 | 0.02 | 4.66 | 4.09 | 3.08 |
| 17-Sep-24 | 0.20 | 22.55 | 11.32 | 10.61 |
| 18-Sep-24 | 0.32 | 52.80 | 19.86 | 21.46 |
| 19-Sep-24 | 242.73 | 147.54 | 31.90 | 117.13 |
Last Updated: 20 September 2024 12:04 PM by 5Paisa
Northern Arc Capital IPO is set to open on 16 September 2024 and will close on 19 September 2024. Northern Arc Capital provides retail loans to underserved households and businesses across India. Their business model is highly diversified, offering a range of financial products across various sectors, geographic regions and borrower categories. This broad approach allows them to effectively serve a wide array of clients and reduce risk by not relying on any single market segment.
The IPO includes a fresh issue of ₹1.9 Cr shares aggregating ₹500 Cr and includes an offer for sale of ₹1.05 Cr shares aggregating ₹277 Cr. The price range is set between ₹249 to ₹263 per share and the lot size is 57 shares.
The allotment is scheduled to be finalized on 20 September 2024. It will go public on BSE & NSE, with a tentative listing date of 24 September 2024.
ICICI Securities Limited, Axis Bank Limited and Citigroup Global Markets India Private Limited are the book running lead managers while Kfin Technologies Limited is the registrar.
Northern ARC Capital IPO Size
| Types | Size |
|---|---|
| Total IPO Size | ₹777 Cr |
| Offer For Sale | ₹277 Cr |
| Fresh Issue | ₹500 Cr |
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 IPO Reservation
| Investors Category | Subscription (times) | Shares Offered | Shares bid for | Total Amount (Cr.) |
|---|---|---|---|---|
| QIB | 242.73 | 58,01,354 | 1,40,81,33,928 | 37,033.92 |
| NII (HNI) | 147.54 | 43,51,016 | 64,19,67,459 | 16,883.74 |
| Retail | 31.90 | 1,01,52,384 | 32,38,93,038 | 8,518.39 |
| Total | 117.13 | 2,03,04,754 | 2,37,82,50,786 | 62,548.00 |
Northern ARC Capital IPO Anchor Allocation
| Anchor Bid Date | 13 September, 2024 |
| Shares Offered | 8,702,031 |
| Anchor portion Size (In ₹ Cr.) | 228.86 |
| Anchor lock-in period end date for 50% shares (30 Days) | 20 October, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | 19 December, 2024 |
1. Meeting Working Capital Needs
2. General Corporate Purposes
Founded in March 1989, Northern Arc Capital provides a range of financial services aimed at meeting the credit needs of underserved households and businesses in India. Over the past 15 years, they have facilitated financing worth over ₹1.73 trillion, benefiting more than 101.82 million people by 31 March 2024.
The company operates through three main areas lending, placement and fund management. They use their own technology platform to offer efficient digital financing solutions focusing on sectors like micro, small and medium enterprises (MSME), microfinance, consumer loans, vehicle loans, affordable housing and agriculture. They have been active in these sectors for over a decade providing crucial credit access to underserved populations in India.
Peers
Five-star Business Finance Ltd
SBFC Finance Limited
Credit access Grameen Ltd
Fusion Micro Finance Ltd
Bajaj Finance Limited
Cholamandalam Investment And Finance Company Ltd
Poonawalla Fincorp Limited
Mas Financial Services Ltd
| Particulars (in Rs. Crores) | FY24 | FY23 | FY22 |
|---|---|---|---|
| Revenue | 1,906.03 | 1,311.2 | 916.55 |
| EBITDA | 1163.57 | 890.72 | 668.64 |
| PAT | 317.69 | 242.21 | 181.94 |
| Particulars (in Rs. Crores) | FY24 | FY23 | FY22 |
|---|---|---|---|
| Total Assets | 11,707.66 | 9,371.57 | 7,974.12 |
| Share Capital | 89.39 | 89.03 | 88.91 |
| Total Borrowings | 9,047.76 | 7,034.57 | 5,982.96 |
| Particulars (in Rs. Crores) | FY24 | FY23 | FY22 |
|---|---|---|---|
| Net Cash Generated From / (used in) operating activities | -2134.45 | -1295.65 | -1325.50 |
| Net Cash Generated From / (used in) investing activities | 36.05 | -119.47 | -385.52 |
| Net Cash Generated From / (used in) financing activities | 2045.46 | 927.95 | 2028.12 |
| Net Increase (Decrease) In Cash And Cash Equivalents | -52.94 | -487.17 | 317 |
Strengths
1. Northern Arc Capital operates in a vast and underserved market, leveraging its deep knowledge in key sectors to meet diverse credit needs effectively.
2. The company has built a wide network of partners and uses its advanced technology platform to enhance its reach and impact, creating valuable connections and efficiencies.
3. The company is led by a professional management team and supported by a skilled Board and prominent investors, ensuring high governance standards.
Risks
1. Despite operating in a large and underserved market, Northern Arc Capital may face difficulties expanding its reach or encountering resistance in penetrating new segments.
2. Reliance on proprietary technology and data platforms introduces risks related to cybersecurity and technology failures, which could impact operations and customer trust.
3. Changes in financial regulations or non compliance with existing laws could pose risks, potentially affecting the company's operations and financial performance.
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FAQs
Northern Arc Capital IPO opens from 16 September to 19 September 2024.
The size of Arkade Developer's IPO is ₹777.00 crores.
The price of Northern Arc Capital IPO is fixed at ₹249 to ₹263 per share.
To apply for Northern Arc Capital IPO, follow the steps given below:
1. Login to your 5paisa account and select the issue in the current IPO section
2. Enter the number of lots and the price at which you wish to apply for the Northern Arc Capital IPO.
3. Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange.
You will receive a mandate notification to block funds in your UPI app.
The minimum lot size of Northern Arc Capital IPO is 57 shares and the minimum investment required is ₹14,193.
The share allotment date of Northern Arc Capital IPO is 20 September 2024
The Northern Arc Capital IPO will be listed on 24 September 2024.
ICICI Securities Limited, Axis Bank Limited and Citigroup Global Markets India Private Limited are the book running lead managers for Northern Arc Capital IPO.
Northern Arc Capital plans to utilize the raised capital from the IPO for:
1. Meeting Working Capital Needs
2. General Corporate Purposes
Contact Information
Northern ARC Capital
Northern Arc Capital Limited
No. 1, Kanagam Village 10th Floor,
10th Floor, IITM Research Park Taramani,
Chennai - 600 113
Phone: +91 44 6668 7000
Email: investors@northernarc.com
Website: http://www.northernarc.com/
Northern ARC Capital IPO Register
Kfin Technologies Limited
Phone: 04067162222, 04079611000
Email: nacl.ipo@kfintech.com
Website: https://kosmic.kfintech.com/ipostatus/
Northern ARC Capital IPO Lead Manager
ICICI Securities Limited
Axis Bank Limited
Citigroup Global Markets India Private Limited
