Last updated on September 25, 2024
Northern Arc Capital IPO Description – Northern Arc Capital is a diversified financial services platform established to meet the varied retail credit needs of under-served households and businesses across India. Since it entered into the financial inclusion space in 2009, the company has facilitated financing of over INR 1.73 trillion, impacting more than 101.82 million lives, created an ecosystem of 328 Originator Partners, 50 Retail Lending Partners, and 1,158 Investor Partners across India as of 31 March 2024. As of Fiscal Year 2024, the company had one of the lowest gross non-performing assets (GNPA) at 0.45% and net non-performing assets (NNPA) at 0.08%.
The company stands out as one of India’s leading diversified non-banking financial companies (NBFCs) in terms of Assets under Management (AUM) as of 31 March 2024. Northern Arc Capital has honed its expertise in facilitating credit across targeted sectors in India, including micro, small, and medium enterprises (MSMEs) financing, microfinance (MFI), consumer finance, vehicle finance, affordable housing finance, and agricultural finance. As of 31 March 2024, the company had 2,695 permanent employees.
Northern Arc Capital’s quantitative analysis is grounded in over 35.17 million data points, comprising (a) loan pools the company has assessed and invested in on behalf of Originator Partners from Investor Partners through securitizations and direct assignments as of 31 March 2024, and (b) more than 18.58 million Direct to Customers Lending loans it has disbursed as of the same date.
Promoters of Northern Arc Capital – Does not have an Identifiable Promoter
Table of Contents
Northern Arc Capital IPO Details
| Northern Arc Capital IPO Dates | 16 – 19 September 2024 |
| Northern Arc Capital Issue Price | INR 249 – 263 per share Employee Discount – INR 24 per share |
| Fresh issue | INR 500 crore |
| Offer For Sale | 1,05,32,320 shares (INR 277 crore) |
| Total IPO size | INR 777 crore |
| Minimum bid (lot size) | 57 shares (INR 14,991) |
| Face Value | INR 10 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
Northern Arc Capital Financial Performance
| Â | FY 2022 | FY 2023 | FY 2024 |
| Revenue | 909.54 | 1,304.97 | 1,890.08 |
| Expenses | 668.16 | 988.10 | 1,484.83 |
| Net income | 181.94 | 242.21 | 317.69 |
| Margin (%) | 20.00 | 18.56 | 16.81 |
Northern Arc Capital Offer News
- Northern Arc Capital IPO Allotment Status
- Northern Arc Capital RHP
- Northern Arc Capital DRHP
- ASBA IPO Forms
- Live IPO Subscription Status
- IPO Allotment Status
Northern Arc Capital Valuations & Margins
| FY 2022 | FY 2023 | FY 2024 (Pre Issue) | FY 2024 (Post-Issue)* | |
| EPS | 12.79 | 17.02 | 22.33 | 19.70 |
| PE Ratio | – | – | 11.15 – 11.78 | 12.64 – 13.35 |
| FY 2022 | FY 2023 | FY 2024 | |
| RONW (%) | 9.92 | 11.76 | 13.32 |
| NAV | 122.21 | 137.41 | 162.64 |
| EBITDA (%) | 73.51 | 68.26 | 61.56 |
| Debt/Equity | 3.27 | 3.40 | 3.90 |
Northern Arc Capital IPO GMP Today (Daily Trend)
| Date | Day-wise IPO GMP | Kostak | Subject to Sauda |
| 23 September 2024 | 160 | – | 6,000 |
| 21 September 2024 | 165 | – | 6,000 |
| 20 September 2024 | 165 | – | 6,000 |
| 19 September 2024 | 180 | – | 6,800 |
| 18 September 2024 | 200 | – | 6,900 |
| 17 September 2024 | 165 | – | 6,700 |
| 16 September 2024 | 150 | – | 6,600 |
Northern Arc Capital IPO Objectives
The company proposes to utilize the Net Proceeds to meet future capital requirements toward onward lending.
Northern Arc Capital IPO Subscription – Live Updates
| Category | QIB | NII | Retail | Employee | Total |
|---|---|---|---|---|---|
| Shares Offered | 58,48,056 | 45,11,808 | 1,05,27,552 | 5,90,874 | 2,14,78,290 |
| 19 Sep 2024 | 240.79 | 142.41 | 31.08 | 7.33 | 110.91 |
| 18 Sep 2024 | 0.31 | 50.80 | 18.97 | 4.32 | 20.18 |
| 17 Sep 2024 | 0.20 | 21.72 | 10.84 | 2.25 | 9.99 |
| 16 Sep 2024 | 0.02 | 4.48 | 3.87 | 0.92 | 2.87 |
Shares allotted to anchor investors are not included in these calculations. Similarly, shares allotted to market makers, if any, are not part of these calculations.
Northern Arc Capital – Comparison With Listed Peers
| Company | PE ratio | EPS | RONW (%) | NAV | Revenue (Cr.) |
| Northern Arc Capital | 13.35 | 19.70 | 13.32 | 162.64 | 1,890.08 |
| Five-Star Business Finance | 26.46 | 28.39 | 16.09 | 177.68 | 2,182.85 |
| SBFC Finance | 36.64 | 2.30 | 8.53 | 25.87 | 1,018.64 |
| CreditAccess Grameen | 13.12 | 90.41 | 5.01 | 1,809.93 | 5,166.67 |
| Fusion Micro Finance | 6.21 | 50.11 | 17.74 | 281.93 | 2,316.73 |
| Bajaj Finance | 30.93 | 235.98 | 18.84 | 1,239.03 | 54,969.49 |
| Cholamandalam Investment and Finance | 36.22 | 41.06 | 17.46 | 233.26 | 19,139.62 |
| Poonawalla Fincorp | 17.81 | 21.63 | 20.60 | 105.44 | 3,109.01 |
| MAS Financial Services | 18.55 | 15.31 | 14.08 | 108.71 | 1,279.16 |
Northern Arc Capital IPO Dates & Listing Performance
| IPO Opening Date | 16 September 2024 |
| IPO Closing Date | 19 September 2024 |
| Finalization of Basis of Allotment | 20 September 2024 |
| Initiation of refunds | 23 September 2024 |
| Transfer of shares to demat accounts | 23 September 2024 |
| Northern Arc Capital IPO Listing Date | 24 September 2024 |
| Opening Price on NSE | INR 350 per share (up 33.08%) |
| Closing Price on NSE | INR 323.40 per share (up 22.97%) |
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Northern Arc Capital Offer Lead Manager
AXIS CAPITAL LIMITED
1st Floor, Axis House C-2 Wadia International Center
Pandurang Budhkar Marg, Worli Mumbai – 400 025 Maharashtra
Phone: +91 22 4325 2183
Email:Â [email protected]
Website: www.axiscapital.co.in
Northern Arc Capital Offer Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower – B, Plot 31 & 32, Gachibowli,
Financial District, Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana
Tel:Â +91 40 6716 2222
E-mail:Â [email protected]
Website:Â www.kfintech.com
Northern Arc IPO Contact Details
NORTHERN ARC CAPITAL LIMITED
No. 1, Kanagam Village, 10th Floor, IITM Research Park,
Taramani, Chennai 600 113, Tamil Nadu
Phone:Â +91 44 6668 7000
Email: [email protected]
Website: www.northernarc.com
Northern Arc Capital IPO FAQs
How many shares in Northern Arc CapitalIPO are reserved for HNIs and retail investors?
The investors’ portion for QIB – 50%, NII – 15%, and Retail – 35%.
How to apply for a Northern Arc Capital Public Offer?
The best way to apply for Northern Arc Capital’s public offer is through Internet banking ASBA (know all about ASBA here). You can also apply online through your stock broker using UPI. If you prefer to make paper applications, fill up an offline IPO form and deposit the same to your broker.
What is Northern Arc Capital IPO GMP today?
Northern Arc Capital IPO GMP today is INR 160 per share.
What is Northern Arc Capital kostak rate today?
Northern Arc Capital’s kostak rate today is INR NA per application.
What is Northern Arc Capital Subject to Sauda rate today?
Northern Arc Capital Subject to Sauda rate today is INR 6,000 per application.
