Northern Arc Capital Limited IPO, GMP, Details, Price, and Review IPO Details
| Detail | Description |
|---|---|
| IPO Date | September 16, 2024 to September 19, 2024 |
| Listing Date | [.] |
| Face Value | ₹ 10 per share |
| Price Band | ₹ 249 to ₹ 263 per share |
| Lot Size | 57 Shares |
| Total Issue Size | 2,95,43,727 shares (aggregating up to ₹ 777 Cr) |
| Fresh Issue | 1,90,11,407 shares (aggregating up to ₹ 500 Cr) |
| Offer for Sale | 1,05,32,320 shares of ₹10 (aggregating up to ₹ 277 Cr) |
| Employee Discount | Rs 24 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 14,23,14,010 |
| Shareholding post issue | 16,13,25,417 |
About Northern Arc Capital Limited IPO, GMP, Details, Price, and Review
Northern Arc Capital Limited is a diversified financial services platform set up primarily with the mission of catering to the diverse retail credit requirements of the under-served households and businesses in India. Over the last 14 years, the company's approach has been to create a differentiated and comprehensive play on the retail credit ecosystem in India spread across sectors.
Since 2009, when they entered the financial inclusion space, NACL has facilitated the financing of over ₹1.50 trillion which has impacted over 80.59 million lives across India, as of September 30, 2023. According to the CRISIL Report, they are one of the leading players amongst India’s diversified NBFCs in terms of Assets under Management (“AUM”) as of March 31, 2023, with a business model diversified across offerings, sectors, products, geographies and borrower categories. Further, they have one of the lowest industry-wide credit costs amongst diversified NBFCs in India, as of March 31, 2023.
Northern Arc Capital IPO Overview:
Issue Size: ₹777 crore
• Fresh Issue: ₹500 crore (1.9 crore shares)
• Offer for Sale: ₹277 crore (1.05 crore shares)
Subscription Dates: September 16, 2024, to September 19, 2024
Price Band: ₹249 to ₹263 per share
Minimum Lot Size: 57 shares
Lead Managers:
• ICICI Securities Limited
• Axis Bank Limited
• Citigroup Global Markets India Private Limited
Registrar: Kfin Technologies Limited
Northern Arc Capital Limited IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Net Offer |
Northern Arc Capital IPO Anchor Investors Details
| Bid Date | September 13, 2024 |
| Shares Offered | 8,702,031 |
| Anchor Portion Size (In Cr.) | 228.86 |
| Anchor lock-in period end date for 50% shares (30 Days) | October 20, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | December 19, 2024 |
Company & Financials
Northern Arc Capital Limited was founded in 2009 and offers retail loans to underserved households and businesses in India. Northern Arc Capital's business model is diversified across different offerings, sectors, products, geographies and borrower categories. As of March 31, 2024, the company has facilitated over Rs. 1.73 trillion worth of financing, reaching out to over 101.82 million people across India. The company has expertise in lending across various focus sectors in India, especially in micro, small, and medium enterprise (MSME) finance, microfinance (MFI), consumer finance, vehicle finance, affordable housing finance, and agriculture finance. The company has been active in MSME finance for over 14 years, MFI finance for 15 years and consumer finance for nine years.
Northern Arc Capital IPO Review
The company is a niche player on diversified financial services platforms. It has posted steady growth in its top and bottom lines for the reported periods. Based on FY24 earnings, the issue relatively appears reasonably priced. The company is poised for bright prospects ahead. Investors may park funds for the medium to long term.
Objectives of Northern Arc Capital IPO
The company proposes to utilize the Net Proceeds to meet future capital requirements toward onward lending.
Northern Arc Capital Limited IPO, GMP, Details, Price, and Review Financial Information
Latest Revenue
1,906.03
₹ Crore
Profit After Tax
317.69
₹ Crore
Net Worth
2,314.35
₹ Crore
Total Borrowing
9,047.76
₹ Crore
| Period Ended | Assets | Total Income | Profit After Tax | Net Worth | Total Borrowing | ||||
|---|---|---|---|---|---|---|---|---|---|
| 31 Mar 2024 | 11,707.66 | 1,906.03 | 317.69 | 2,314.35 | 9,047.76 | ||||
| 31 Mar 2023 | 9,371.57 | 1,311.2 | 242.21 | 1,955.39 | 7,034.57 | ||||
| 31 Mar 2022 | 7,974.12 | 916.55 | 181.94 | 1,739.04 | 5,982.96 | ||||
| Amount in ₹ Crore | |||||||||
Northern Arc Capital Limited IPO, GMP, Details, Price, and Review GMP TREND (DAILY UPDATES)
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| 2024-09-24 | ₹263 | ₹131 (49.81%) | - |
Northern Arc Capital Limited IPO, GMP, Details, Price, and Review Key Performance Indicator
| KPI | Values |
|---|---|
| Debt/Equity | 3.9 |
| RoNW | 13.32% |
| P/BV | 1.49 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 22.32 | 19.69 |
| P/E (x) | 11.78 | 13.36 |
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Competitive Strengths
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Northern Arc Capital Limited IPO, GMP, Details, Price, and Review IPO Timeline
| IPO Open Date | Monday, September 16, 2024 |
| IPO Close Date | Thursday, September 19, 2024 |
| Basis of Allotment | Friday, September 20, 2024 |
| Initiation of Refunds | Monday, September 23, 2024 |
| Credit of Shares to Demat | Monday, September 23, 2024 |
| Listing Date | Tuesday, September 24, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 19, 2024 |
IPO Lot Size
| Investors | No.of lots | Shares Offered | Max Bid 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 |