Looking for upcoming IPOs to invest in? The Northern Arc Capital IPO is one to keep an eye on. With a total issue size of ₹777 crores, this book-built offer consists of a fresh issue of 1.9 crore shares worth ₹500 crores and an offer for sale of 1.05 crore shares amounting to ₹277 crores. Opening for subscription on September 16, 2024, and closing on September 19, 2024, the allotment is expected to be finalised by September 20, with a tentative listing date of September 24, 2024, on the BSE and NSE.
For those looking to invest in an IPO, the price band is set between ₹249 and ₹263 per share, with a minimum application lot size of 57 shares. Retail investors can participate with an investment starting at ₹14,991, while larger investors can choose from sNII (14 lots) or bNII (67 lots) options.
The issue also offers employees a reservation of up to 590,874 shares at a ₹24 discount. ICICI Securities, Axis Bank, and Citigroup Global Markets India are the lead managers for this highly anticipated IPO, with Kfin Technologies handling the registrar services.
Northern Arc Capital Ltd submitted its Draft Red Herring Prospectus (DRHP) to SEBI on July 15, 2021. The proposed IPO includes a fresh issue of ₹300 crores and an offer for sale of up to 36,520,585 equity shares. In addition, the company is considering a pre-IPO placement of ₹150 crores.
The issue's book-running lead managers include IIFL Securities, Axis Capital, SBI Capital Markets, and Credit Suisse Securities, making it an attractive investment option among upcoming IPOs.
The Northern Arc Capital IPO aims to raise significant capital. The issue opens for subscription on September 16, 2024, and closes on September 19, 2024. Key details include pricing, lot sizes, and allocations, which will be outlined in the table below.
| Listing date | September 24, 2024 |
| Northern Arc Capital Limited IPO date | September 16, 2024 to September 19, 2024 |
| Price band | ₹249 to ₹263 per share |
| Face value | ₹10 per share |
| Total issue size | 29,543,727 shares(aggregating up to ₹777.00 Cr) |
| Lot size | 57 Shares |
| Offer for sale | 10,532,320 shares of ₹10(aggregating up to ₹277.00 Cr) |
| Fresh issue | 19,011,407 shares(aggregating up to ₹500.00 Cr) |
| Issue type | Book Built Issue IPO |
| Employee discount | Rs 24 per share |
| Listing at | BSE, NSE |
| Share holding pre-issue | 142,314,010 |
| Share holding post-issue | 161,325,417 |
Stay informed of the key dates for the Northern Arc Capital IPO. From the subscription opening and closing dates to the final allotment and listing, these timelines are crucial for investors looking to participate. Check the table below for detailed IPO schedule information.
| IPO open date | September 16, 2024, Monday |
| IPO close date | September 19, 2024, Thursday |
| Basis of allotment | September 20, 2024, Friday |
| Initiation of refunds | September 23, 2024, Monday |
| Credit of shares to demat | September 23, 2024, Monday |
| Listing date | September 24, 2024, Tuesday |
| Cut-off time for UPI mandate confirmation | September 19, 2024, by 5 PM |
Founded in 2009, Northern Arc Capital Limited provides retail loans to underserved households and businesses across India. With a diverse business model spanning various sectors, products, and regions, the company has facilitated over ₹1.73 trillion in financing as of March 31, 2024, impacting more than 101.82 million individuals.
Northern Arc Capital excels in lending across multiple focus areas, including micro, small, and medium enterprise (MSME) finance, microfinance (MFI), consumer finance, vehicle finance, affordable housing finance, and agriculture finance. The company has over 14 years of experience in MSME finance, 15 years in MFI finance, and nine years in consumer finance.
The company employs a multi-channel approach to retail lending, which includes providing financing from its balance sheet to originator partners.
Northern Arc Capital Limited has shown strong financial performance, with a 45% increase in revenue and a 31% rise in profit after tax (PAT) between the financial years 2023 and 2024. As of March 31, 2024, the company's market capitalisation stands at ₹4,242.86 crores, with a debt/equity ratio of 3.9, a return on net worth (RoNW) of 13.32%, and a price-to-book value (P/BV) of 1.49. The pre-IPO earnings per share (EPS) is ₹22.32, while the post-IPO EPS is ₹19.69, reflecting a shift in price-to-earnings ratio from 11.78x to 13.36x. Northern Arc Capital Limited IPO GMP information is yet to be updated, so revisit for the latest details.
| Period ended | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 1,906.03 | 1,311.20 | 916.55 |
| Assets | 11,707.66 | 9,371.57 | 7,974.12 |
| Reserves and surplus | 2,123.37 | 1,784.22 | 1,555.30 |
| Profit after tax | 317.69 | 242.21 | 181.94 |
| Total borrowing | 9,047.76 | 7,034.57 | 5,982.96 |
| Net worth | 2,314.35 | 1,955.39 | 1,739.04 |
| Amount in ₹ Crores | |||
Northern Arc Capital boasts several strengths, including a growing and diversified base of Originator and Investment Partners across various sectors and a proprietary technology system, Nimbus, which enhances business opportunities and efficiency. The company's extensive geographical and product diversification, along with a well-developed risk management process honed over decades, further strengthens its position.
However, it faces risks such as potential disruptions in fund sources, which could significantly impact operations. The company's exposure to high-risk borrowers means that large-scale defaults could adversely affect its financials. Additionally, the highly regulated microfinance sector in India poses risks, and the fund management business might encounter further challenges.
As one of the upcoming IPOs to invest in, Northern Arc Capital presents a compelling opportunity for potential investors. With its substantial issue size and strategic mix of fresh shares and offer-for-sale, this IPO stands out in the market. The company's impressive financial performance and diversified business model further enhance its attractiveness. However, it's essential to consider both the strengths and risks associated with the investment.
Northern Arc Capital's robust growth trajectory and advanced technology system are promising, but potential investors should remain mindful of sector-specific risks and financial uncertainties. If you're looking to invest in an IPO, Northern Arc Capital's offering could be a significant addition to your investment portfolio. Stay informed and evaluate the details thoroughly before making your decision.
The Northern Arc Capital IPO is a main-board public offering of 29,543,727 equity shares, each with a face value of ₹10, and aims to raise to ₹777 crores. The share price for the Northern Arc Capital IPO ranges from ₹249 to ₹263, with a minimum lot size of 57 shares. The IPO will open on September 16, 2024, and close on September 19, 2024. Kfin Technologies Limited will serve as the registrar for the IPO, and the shares are anticipated to be listed on both the BSE and NSE.
The Northern Arc Capital IPO will commence on September 16, 2024, and will close on September 19, 2024.
The basis of allotment for the Northern Arc Capital IPO will be finalised on Friday, September 20, 2024. Allotted shares are expected to be credited to your demat account by Monday, September 23, 2024. For updates on the allotment status, please check the Northern Arc Capital IPO allotment status page.
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