IPO Details

Bidding Dates

16 Sep '24 - 19 Sep '24

Minimum Investment

₹14,991 / 1 Lot (57 Shares)

Price Range

₹249 - ₹263

Maximum Investment

₹1,94,883 / 13 Lot (741 Shares)

Retail Discount

To be announced

Issue Size

₹777.00 Cr

Investor category and sub category

Retail Individual Investors (RII)  |   Non-institutional Investors (NII)  |   Qualified Institutional Buyers (QIB)  |   Eligible employees  |  

IPO Dates

Important dates with respect to IPO allotment and listing

Opening Date

Sep 16, 2024

Closing Date

Sep 19, 2024

Basis of Allotment

Sep 20, 2024

Initiation of Refunds

Sep 23, 2024

Listing Date

Sep 24, 2024

About Northern Arc Capital IPO

Northern Arc Capital Limited is set to launch its IPO in September 2024, offering an exciting investment opportunity. The IPO consists of a book-built issue valued at ₹777 crore. It includes a fresh issue of 1.9 crore shares, aggregating ₹500 crore, along with an offer for sale of 1.05 crore shares, totaling ₹277 crore.

Investors can subscribe to the Northern Arc Capital IPO between September 16, 2024, and September 19, 2024. The allotment is expected to be finalised on September 20, 2024, with a listing on both the BSE and NSE on September 24, 2024. The price band for the IPO is set between ₹249 and ₹263 per share, with a minimum lot size of 57 shares for retail investors.

The issue has a special provision, offering up to 590,874 shares for employees at a discount of ₹24 per share. ICICI Securities Limited, Axis Bank Limited, and Citigroup Global Markets India Private Limited are the lead managers for the IPO, while Kfin Technologies Limited serves as the registrar.

Industry Outlook:

  1. The number of middle-income households in India is projected to rise from 41 million in 2012 to 181 million by 2030, at a CAGR of 9%. This increase in household income, especially in semi-urban and rural areas, will create more demand for retail and MSME financing.
  2. NBFC credit is expected to grow at 16%-18% CAGR between Fiscal 2024 and 2026, driven by retail sectors such as housing, auto, and microfinance.

Northern Arc Capital IPO Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

  1. To raise capital to meet future lending requirements, supporting business expansion and growth.
  2. To enhance brand visibility and strengthen the company’s market presence in India.
  3. To ensure smooth implementation of growth plans.

About Northern Arc Capital Limited

Northern Arc Capital Limited is a diversified financial services platform that primarily addresses the retail credit needs of underserved households and businesses in India. Established with a focus on financial inclusion, the company has facilitated financing worth over ₹1.73 trillion, positively impacting more than 101 million lives across the country as of March 31, 2024.

According to the CRISIL report, Northern Arc ranks among India's leading non-banking financial companies (NBFCs) in terms of assets under management (AUM), offering a diversified portfolio across sectors like MSME financing, microfinance, and consumer finance.

The company operates through a multi-channel approach that includes lending, placements, and fund management, leveraging proprietary technology platforms such as Nimbus and nPOS to streamline the lending process. It extends credit directly to customers and through partnerships, covering 671 districts across India. Known for its efficient credit underwriting process, Northern Arc boasts one of the lowest non-performing asset ratios in the industry, reflecting its strong asset quality and risk management capabilities.

Peer Details

The following are the listed peers of Northern Arc Capital Limited:

  1. Five-Star Business Finance Limited
  2. SBFC Finance Limited
  3. Credit Access Grameen Limited
  4. Fusion Micro Finance Limited
  5. Bajaj Finance Limited
  6. Cholamandalam Investment and Finance Company Limited
  7. Poonawalla Fincorp Limited
  8. MAS Financial Services Limited

How to Check the Allotment Status of the Northern Arc Capital IPO?

Steps to check IPO allotment status on Angel One’s app:

  1. Log in to the Angel One app
  2. Go to the IPO Section and then to IPO Orders.
  3. Select the individual IPO that you had applied for and check the allotment status.
  4. Angel One will notify you of your IPO allotment status via push notification and email.

Contact Details of Northern Arc Capital IPO

  • Registered office: No. 1, Kanagam Village, 10th Floor, IITM Research Park Taramani, Chennai 600 113, Tamil Nadu, India
  • Phone: +91 44 6668 7000
  • E-mail: investors@northernarc.com

IPO Financials

Particulars Year ending on March 31, 2024 Year ending on March 31, 2023 Year ending on March 31, 2022
Revenue from Operation (in ₹ million) 18,900.84 13,049.71 9,095.39
Profit After Tax (PAT) (in ₹ million) 3,176.93 2,422.14 1,819.38
Net Worth (in ₹ million) 23,143.49 19,553.90 17,390.42
Earnings per Share (in ₹) 34.61 25.85 19.52
Average Cost of Borrowing (%) 9.23 8.84 8.55
Total Borrowings (in ₹ million) 90,477.56 70,345.66 59,829.58
EBITDA (in ₹ million) 11,635.65 8,907.18 6,686.37

Know before investing

Strengths

6
  1. Northern Arc Capital serves a vast underpenetrated credit market in India.

  2. The company’s strong sectoral expertise supports significant growth potential.

  3. Rural and semi-urban markets offer large opportunities for credit expansion.

  4. Northern Arc's diversified offerings target underserved sectors like MSME and MFI.

  5. Technology-driven platforms streamline operations and enhance lending efficiency.

  6. Extensive partner networks fuel liquidity access and broaden investment opportunities.

Risks

6
  1. Diversified business model exposes Northern Arc Capital to multiple sector risks.

  2. Defaults by borrowers can increase NPAs, affecting cash flows.

  3. Lack of identifiable promoters increases reliance on key management personnel.

  4. The auditor's modifications may impact Northern Arc Capital's financial operations.

  5. Unsecured investments pose higher risks, leading to potential write-offs.

  6. Non-compliance with financing covenants could harm Northern Arc Capital's business.

  • How to Apply in IPO
  • How to Check IPO Allotment Status

Login to Angel One App / Website & click on IPO

Select desired IPO & tap on "Apply"

Enter UPI ID, set quantity/price & submit

Accept mandate on the UPI app to complete the process

Login to Angel One App / Website

Choose IPO section on Home Page

Click IPO Orders

Chose the IPO application you want to view the status for

Northern Arc Capital IPO FAQs

What is the Northern Arc Capital IPO?

Northern Arc Capital’s IPO is a book built issue IPO. It will be open from September 16, 2024, to September 19, 2024.

When will the Northern Arc Capital IPO be allotted?

The Basis of Allotment will happen on Friday, September 20, 2024.

When will Northern Arc Capital IPO open for subscription?

The IPO subscription window will open on September 16, 2024.

What minimum lot size can retail investors subscribe to?

The minimum lot size retail investors can subscribe to is 1 lot, and the lot size is 57 shares.

When will Northern Arc Capital Limited list on exchanges?

The listing date for Northern Arc Capital IPO is Tuesday, September 24, 2024.

What would be the listing gains on the Northern Arc Capital IPO?

Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.

How to apply for Northern Arc Capital IPO online?

  1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
  2. Locate the IPO Section: Navigate to the ‘IPO’ section on the platform.
  3. Select IPO: Find and select the Northern Arc Capital IPO from the list of open IPOs.
  4. Enter the Lot Size: Specify the number of lots you want to bid for.
  5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
  6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

How to increase your chances of getting a Northern Arc Capital IPO allotment?

  1. Multiple Submissions: Use different Demat accounts to make multiple applications.
  2. Higher Price Band Bidding: Opt for bidding at the cut-off price or higher price band.
  3. Timely Subscription: Ensure you subscribe to the IPO within the specified time frame.

How do I approve the UPI mandate request for Northern Arc Capital IPO?

You must complete the payment process by logging in to your UPI handle and approving the payment mandate.

Can I submit more than one application for the public issue of Northern Arc Capital Limited using one PAN?

You can submit only one application using your PAN card.

How to read Northern Arc Capital Limited's financial statements?

To read Northern Arc Capital Limited’s financial statements, download the IPO’s RHP document.

What is the minimum order quantity for Northern Arc Capital IPO?

Details are not available.