Northern Arc Capital is into Financial Services NBFC sector and is looking raise funds through Fresh Issue and Offer For Sale
IPO Summary
Northern Arc Capital IPO is a public offering of shares by Company does not have an identifiable promoter. The IPO will open on September 16 and will close on September 19. The price band is ₹249 to ₹263 per share and the lot size is 57 shares. The issue size is ₹777. crore. The shares are expected to be listed on NSE, BSE on September 24 (^). Some additional information that you may find useful are:- Financial Snapshot
- Revenue (Rs Crores): Rs 1890.0 in FY24 (v/s Rs 1304.9 in FY23 and v/s Rs 909.5 in FY22)
- PAT (Rs Crores): 317.6 in FY24 (v/s 2422.2 in FY23 and v/s 181.9 in FY22)
Promoters of the company are Company does not have an identifiable promoter Currently promoters hold 0% stake in the company. While post-equity promoters stake will be .%
- Company aims to raise between Rs 762 to 777 crs through this IPO.
- The net proceeds of the issue will be utilized to Company intends to utilize the Net Proceeds to meet future capital requirements towards onward lending in focused sectors, namely, MSME financing, MFI, consumer finance, vehicle finance, affordable housing finance and agricultural finance, and to ensure compliance with the RBI regulations on capital adequacy, for Financial Year 2025.
- Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 13-Sep-24.
- Price band for the IPO has been fixed at Rs 249 to 263 per share and bid lot are in multiple of 57 shares. The implied market cap post-issue at Rs 4,044 to 4,243 crs.
- As per the tentative schedule, allotment date of this IPO is most likely on September 20 and share are expected to be listed on NSE, BSE on September 24.
- Company has direct peer competition in India'a NBFC Financing sector. In Listed space peers include Five-star business finance ltd, SBFC Finance Ltd., CreditAccess Grameen Ltd., Bajaj Finance Ltd., Cholamandalam Investment and Finance Company Limited, Poonawalla Fincorp Limited and MAS Financial Services Limited among others.
- ICICI Securities, Axis Capital, Citi Global Markets has been appointed as Merchant Banker to the issue. KFin Technologies Ltd. has been appointed as official registrar of the issue.
Key Pointers of Northern Arc Capital IPO:
| Northern Arc Capital Limited IPO Snapshot | UdhyamPitch on X | |||
|---|---|---|---|
| Established | City | Sector | Sub-Sector |
| 1989 | Chennai | Financial Services | NBFC |
| Issue | Issue Type | Tentative Listing Date | Listing at |
| IPO (Fresh+OFS) | Book Building | 24-Sep-24 | NSE, BSE |
| IPO Dates | Price Band (Rs/sh) | Face Value (Rs/sh) | Min Lot Qty |
| 16-Sep-24 to 19-Sep-24 | ₹ 249 to 263 per sh | ₹ 10 per sh | 57 sh and in multiples |
| Retail App (min) | Retail App (max) | Non-Retail (Rs2-10L App) | Non-Retail (>Rs10L min App) |
| 57 shares ₹ 14,991 | 741 shares up to ₹ 194,883 | 798 to 3,762 shares ₹ 209,874 to 989,406 | 3,819 shares and above ₹ 1,004,397 and above |
There are highly chances of variation in data. Users are requested to visit BSE, NSE, SEBI to gather information or read DRHP / RHP for more information.
About Northern Arc Capital Limited
Established in 1989, NBFC company Northern Arc Capital is diversified financial services platform catering to the diverse retail credit requirements of the under-served households and businesses in India. Over the last 15 years, Since 2009, company facilitated financing of over ₹1.73 trillion that has impacted over 101.82 million lives across India, as of March 31, 2024. Business Model includes: i) Lending: Retail lending, under-served households and businesses lending etc ii) Placements: Credit for Originator Partners iii) Fund Management: managing debt funds and providing portfolio management services.
- Financial Snapshot
- Revenue (Rs Crores): Rs 1890.0 in FY24 (v/s Rs 1304.9 in FY23 and v/s Rs 909.5 in FY22)
- PAT (Rs Crores): 317.6 in FY24 (v/s 2422.2 in FY23 and v/s 181.9 in FY22)
About Industry
The Indian retail credit market is expected to further grow at a CAGR of 17-18% between Fiscals 2024 and 2026 to reach ₹100.9 trillion by Fiscal 2026. NBFCs loan outstanding for MSME, MFI, consumer finance, vehicle, affordable housing and agriculture loans are expected to grow at a CAGR of 13-15%, 23-25%, 17-20%, 12-14%, 14-16% and 9-10%, respectively, between Fiscals 2024-2026. Rural areas, which accounted for 47% of GDP, received only 9% of the overall banking credit, as of March 31, 2024, which also shows the vast market opportunity for banks and NBFCs to lend in these areas.
| Northern Arc Capital Limited IPO Dates | UdhyamPitch on X | |
|---|---|
| Anchor Open | 13-Sep-24 |
| IPO Open | 16-Sep-24 |
| IPO Close | 19-Sep-24 |
| Allotment | 20-Sep-24 |
| Credit of Shares | 23-Sep-24 |
| Refund | 23-Sep-24 |
| Listing | 24-Sep-24 |
| Anchor Investor Lockin (50% of Anchor book investment) | |
| Anchor Investor Lockin (Balance 50% of Anchor book investment) | |
Kindly note UPI Mandate deadline is 5:00 pm IST on closing date. To avoid last minute issue, request you to approve UPI mandate before 4:00 pm IST on last day. In case, UPI mandate has not been approved during the prescribed time period, applications are liable to get rejected.
There are highly chances of variation in dates. Users are requested to visit BSE, NSE, SEBI to gather information or read DRHP / RHP for more information.
| Northern Arc Capital Limited IPO - Management Details: | |
|---|---|
| P.S. Jayakumar, Chairman and Non-Executive Independent Director He was appointed to the Board on October 15, 2020. He has approximately 30 years of work experience, covering both the financial sector and real estate sector. He is a chartered accountant and holds a master’s degree in commerce from the University of Madras and a postgraduate diploma in business management from the Xavier Labour Relations Institute. Previously, he worked at Citibank N. A. and has also served as the managing director and chief executive officer of VBHC Value Home Private Limited and the Bank of Baroda. | |
| Ashish Mehrotra, Managing Director and CEO He has been associated with the Company since July 1, 2021 and was appointed to the Board with effect from February 14, 2022 and designated as a Managing Director and Chief Executive Officer with effect from April 1, 2022. He has a masters in business administration from the Institute of Management Studies, Devi Ahilya Vishwavidyalaya, Indore, Madhya Pradesh, India and has also successfully completed the senior executive leadership program offered by the Harvard Business School. Previously, he was the managing director and chief executive officer of Max Bupa Health Insurance Company Limited and has held various positions at Citibank N.A. including managing director and retail bank head, in India. | |
| Atul Tibrewal, CFO He joined the Company on May 18, 2021. He has completed the bachelor’s in commerce degree course from the University of Calcutta. He is also an associate member of the Institute of Chartered Accountants of India. He has over 16 years of experience in financial roles. He has worked as an officer (marketing accounts) at Durgapur Cement Works, a unit of Birla Corporation Limited, and as an assistant manager at Magma Leasing Limited. Prior to joining our Company, he was a senior vice president and head-treasury at Magma Fincorp Limited. . | |
| Monika Gurung, Company Secretary and Compliance Officer She initially joined the Company on October 1, 2019 and was transferred to its Subsidiary, Pragati from April 1, 2022 until October 27, 2023. She holds a masters in commerce from St. Xavier’s College, Ranchi. Previously, she also worked with Bhasin Hota & Co., Chartered Accountants and Mahaveer Finance India Limited. | |
Visit DRHP / RHP for more details on Board of Directors and Management details.
| Northern Arc Capital Limited IPO - Details of Offer/Issue Breakup | UdhyamPitch on X | |||||
|---|---|---|---|---|---|
| Category | Quota (%) | No of Shares-Lower | No of Shares-Upper | Value (Rs Cr)-Lower | Value (Rs Cr)-Upper |
| QIB (Incl Anchor) | 50 | NA | 14,476,466 | NA | 380.73 |
| Non-Retail (NII) | 15 | NA | 4,342,940 | NA | 114.22 |
| Non-Retail (NII): >Rs10L | NA | 2,895,293 | NA | 76.15 | |
| Non-Retail (NII): Rs2L-Rs10L | NA | 1,447,647 | NA | 38.07 | |
| Retail | 35 | NA | 10,133,526 | NA | 266.51 |
| Employee | NA | 590,795 | 14.1 | 14.1 | |
| Shareholder | NA | . | . | ||
| NA=Not Available or Not Calculated | Upper= Upper Price Band | Lower=Lower Price Band | |||||
There are highly chances of variation in data. Users are requested to visit BSE, NSE, SEBI to gather information or read DRHP / RHP for more information.
| Northern Arc Capital Limited - IPO Merchant Bankers: |
|---|
| ICICI Securities |
| Axis Capital |
| Citi Global Markets |
| Northern Arc Capital Limited - IPO Registrar & Transfer Agent (RTA): |
|---|
| KFin Technologies Ltd. Selenium, Tower B, Plot No 31 and 32, Financial District, Nanakramguda, Serilingampally HYDERABAD TELANGANA 500032 |
Check IPO Allotment status of Northern Arc CapitalIPO:
| Northern Arc Capital Limited - Anchor Lockin Dates and Details | |
|---|---|
| Anchor Investor Lockin (50% of Investment for 30 days) release of | |
| Anchor Investor Lockin (Balance Investment for 90 days) release of | |
Above information is automatically calculated based on estimations. Chances of errors/changes could be possible due to holidays and/or other conditions. Users are requested to Visit BSE, NSE, SEBI for more information or contact the Company/Merchant Banker/RTA for more information.
| Northern Arc Capital Limited - Documents | |
|---|---|
Disclaimer:
Above article only publishes details on the companies and about forthcoming / upcoming IPO' and are solely intended for educational purpose. We don't solicit or invite any interest of user to invest in any of the investment products. Please review DRHP/RHP/Prospectus for more details about the company, fundamentals and other details. Please visit respective sources to verify and know more details about the IPO. SME IPOs can be more volatile due to smaller market capitalization and liquidity. Prices may fluctuate significantly in response to market conditions. We advise users and/or investors to take opinion from certified and SEBI registered experts before taking any investment decisions.
| Source: SEBI, BSE, NSE |
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