Northern Arc Capital IPO

On July 15, 2021, Northern Arc Capital Ltd submitted its DRHP with SEBI. A fresh issue of Rs.300 crores and an offer for sale of up to 36,520,585 equity shares are included in the offering. The business is also considering a pre-IPO placement of Rs.150 crore.

IIFL Securities, Axis Capital, SBI Capital Markets, and Credit Suisse Securities are the book running lead managers for the offer.

Opening Date

To be announced

Closing Date

To be announced

Price Band

To be announced

Issue Size

₹300 Cr

Face Value

₹10

per equity share

Market Lot

To be announced

Opening Date

To be announced

Closing Date

To be announced

Price Band

To be announced

Issue Size

₹300 Cr

Face Value

₹10

per equity share

Market Lot

To be announced

Listing at NSE, BSE

Northern Arc Capital IPO Important Dates

IPO Open Date To be announced
IPO Close Date To be announced
Allotment Date To be announced
Initiation Of Refunds To be announced
Credit Of Shares To
Demat Account
To be announced
IPO Listing Date To be announced
UPI Mandate Expiry Date To be announced

View all upcoming IPOs

About Northern Arc Capital

Northern Arc Capital, founded in 1989, is a non-bank financial institution that specialises in meeting the credit needs of underserved families and enterprises by providing loan financing. They are one of the most well-known diversified NBFCs in India. Microfinance, MSME financing, auto finance, consumer finance, and affordable housing finance are some of the industries in which Northern Arc works.

Since its inception, the organisation has raised more than Rs.9,500 billion for its clients. There are three main services provided by the company:

  1. Financing: Financing to underserved people and enterprises, as well as lending to mid-sized firms.
  2. Syndication and structuring.
  3. Fund management is handled by Northern Arc Investment Managers Pvt Ltd, a subsidiary of Northern Arc.

They have had a total effect of 54.21 million people since its beginning.

Northern Arc Capital IPO Objectives

- Utilize the Net Proceeds towards augmenting Company’s capital base to meet its future capital requirements.
- The Company expects to receive the benefits of listing the Equity Shares on the Stock Exchanges.
- Enhancement of the Company’s brand name and creation of a public market for their Equity Shares in India.
- The main objects set out in the Memorandum of Association enable our Company to undertake its existing activities and the activities for which funds are being raised through the Fresh Issue.

Why should you invest in Northern Arc Capital IPO?

  • The Northern Arc Capital’s AUM from three primary offerings increased at a CAGR of 56.12% over the last 10 years.
  • BThey have raised over Rs. 950.00 billion in funds for their clients since the platform's inception, completed over 900 structured finance transactions and secured over Rs. 28.00 billion in investor commitments across nine high-performing funds, and gathered over 22 million data points on customer repayment behaviour.

Financial Highlights

Particulars (in Rs. Crores) FY21 FY20 FY19
Revenue 681.17 632.82 601.55
PAT 76.6 102.93 115.41
EPS (In Rs) 5.35 7.92 10.91
Total Assets 5,697.16 4,597.5 4,277.99
Total Borrowings 3,932 2,921.5 2,925
Equity Share Capital 87.92 87.47 78.34

How to apply for Northern Arc Capital IPO?

To start trading, investors have two ways to choose from. They either can opt for UPI or create a Demat account. The details are as follows:

UPI

  • Link your bank account to a UPI ID.
  • Register your UPI id with your Demat account.
  • Subscribe for Northern Arc Capital IPO and approve the payment on your UPI ID.

Demat Account

Northern Arc Capital IPO Noteworthy Highlights:

  • Northern ARC Capital Ltd is a systematically important non-deposit taking NBFC registered with the RBI. The company is actively involved in promoting financial inclusion in India, with the goal of bringing more unbanked people into the banking and financial system.
  • To disburse credit in the most de-risked manner possible, Northern ARC Capital Ltd employs a risk management system that blends proprietary insight-based models, quant-based models, market knowledge, and credit check scores.

The Brand’s Pros & Cons:

Pros Cons
The NBFC has a growing and diverse pool of Originator Partners and Investment Partners from a variety of industries. Any disruptions in the NBFC's funding sources will have a significant impact on the company's operations.
Their Nimbus technology system, which they developed themselves, enables them to expand their commercial options while also improving productivity. Northern Arc is exposed to highly high-risk borrowers, and any large-scale defaults in this sector will have a negative impact on the company's financials and operations.
Geographically, in terms of offers, products, and borrower groups, they are quite diverse. In India, the microfinance industry is highly regulated, and any bad changes in this sector would have an impact on the business.
Over the decades that they have been in business, they have refined and enhanced their risk management method. It's likely that the fund management industry will confront new challenges.

Competitive Analysis: Market Peers

The financial services market in India is highly competitive and each of its businesses competes against distinct sets of market players. The company's financing offerings, especially to larger, better-rated clients, face competition from various types of lenders including private and public sector banks, certain NBFCs, development financial institutions, and debt funds (including venture debt funds).
Below are a few financial services-based market players and their comparison of Assets under management.

Firm Name Total AUM (INR cr) Year of incorporation
Anicut Capital 1,500 2015
Centrum Alternatives 650 2017
Northern Arc Investments 2,000 2014
Vivriti Asset Management 236 2017

Northern Arc Capital IPO FAQs

What is Northern Arc Capital IPO?

Northern Arc Capital IPO comprises a fresh issue of Rs 300 crore and an offer for sale of up to 3,65,20,585 equity shares by the shareholders

When will the Northern Arc Capital IPO allotment be available?

Details are not available.

What will be the Northern Arc Capital IPO lot size?

Details are not available.

When will Northern Arc Capital IPO open for subscription?

Details are not available.

What minimum lot size can retail investors subscribe to?

Retail investors can apply for a minimum of one lot.

When will Northern Arc Capital IPO list on exchanges?

Details are not available. Usually, it takes ten working days from the last day of subscription to finally list the IPOs on the stock exchanges.

How to check the allotment status of Northern Arc Capital IPO?

To check the allotment status of Skanray Technologies IPO, Angel One investors can log in to their account.

What is the size of Northern Arc Capital IPO?

Details are not available.

How will I receive shares?

Your shares will get credited directly to your Demat account.

Is it necessary to approve a UPI mandate request immediately?

Approving the UPI payment is the final step of the IPO application. You will get T+1 days to approve the payment mandate in your UPI id.

How to apply for this Northern Arc Capital IPO via the Angel One App?

To apply for the IPO from the Angel One app, search for Skanray Technologies in the active IPO list and click on apply.

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

Details are not available.

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