Northern Arc Capital Limited is coming up with an IPO with a fresh issue of 1.90 crore shares worth INR 500 crores and an offer to sell 1.05 crore existing shares for INR 277 crores. The company aims to meet future capital requirements toward onward lending.
Northern Arc Capital IPO – Important Dates
| Northern Arc Capital Limited IPO Date | September 16, 2024 to September 19, 2024 |
| Northern Arc Capital Limited IPO Listing Date | September 24, 2024 |
| Northern Arc Capital Limited IPO Price | INR 249-263 per share |
| Northern Arc Capital Limited IPO Lot Size | 57 Shares |
| Northern Arc Capital Limited IPO Total Issue Size | INR 777 crores |
| Northern Arc Capital Limited IPO Basis of Allotment | September 20, 2024 |
| Northern Arc Capital Limited IPO Initiation of Refunds | September 23, 2024 |
| Northern Arc Capital Limited IPO Credit of Shares to Demat | September 23, 2024 |
| Northern Arc Capital Limited IPO Issue Type | Book Built Issue IPO |
| Northern Arc Capital Limited IPO Listing At | BSE, NSE |
Read more Northern Arc Capital Limited IPO GMP
Northern Arc Capital Limited IPO – Company Profile
Northern Arc Capital is a diversified financial services platform established primarily to cater to the diverse retail credit requirements of underserved households and businesses in India. Over the last 15 years, the approach has been to create a differentiated and comprehensive play on the retail credit ecosystem in India across sectors.
The company is one of the leading players amongst India’s diversified NBFCs in terms of Assets under Management (“AUM”) as of March 31, 2024. Its business model is diversified across offerings, sectors, products, geographies, and borrower categories.
The company has been operating in the MSME, MFI, and consumer finance sectors for over 14 years, 15 years, and nine years, respectively.
Northern Arc Capital Ltd IPO Fundamental Analysis
Northern Arc Capital Limited’s financial analysis reveals a mixed performance. Revenue has consistently increased over the years, supported by rising equity, liabilities, profitability, higher EPS, and asset growth, though RoNW has declined.
- Revenue Trend: The revenue increased from ₹9,095.39 million in March 2022 to ₹13,049.71 million in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 18,900.84 million.
- Equity and Liabilities: Both equity and liability have shown a consistent increase over the periods, reflecting potential growth and expansion.
- Profitability: The profit after tax (PAT) has increased from ₹1,819.38 million in March 2022 to ₹3,176.93 million by March 2024. The rise in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has also increased from ₹13.09 in March 2022 to ₹23.40 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has reduced from 9.92% to 23.40%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth.
Northern Arc Capital IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in millions) | 9,095.39 | 13,049.71 | 18,900.84 |
| Equity (₹ in millions) | 18,321.12 | 20,677.30 | 23,204.11 |
| Expenses (₹ in millions) | 6,681.56 | 9,881.02 | 14,848.25 |
| Profit and Loss After Tax (₹ in millions) | 1,819.38 | 2,422.14 | 3,176.93 |
| Diluted EPS only (₹) | 13.09 | 17.38 | 23.40 |
| Return on Net Worth (%) | 9.92 | 11.76 | 13.32 |
| NAV per Equity Share (₹) | 133.54 | 150.01 | 177.06 |
| Total Assets (in millions) | 79,741.16 | 93,715.72 | 1,17,076.59 |
| Total Liabilities (in millions) | 61,420.04 | 73,038.42 | 93,872.48 |
Northern Arc Capital Limited IPO Peer Comparison
The data compares various financial companies, highlighting their market positions, share prices, earnings per share (EPS), and price-to-earnings (P/E) ratios. Companies range from microfinance institutions to large-scale financiers like Bajaj Finance and Cholamandalam.
| Company | Revenue from operations (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Northern Arc Capital Limited | 18,900.84 | 10 | – | 34.61 | 23.40 | 13.32 | 177.06 |
| Five-Star Business Finance Limited | 21,828.47 | 1 | 26.76 | 28.64 | 28.39 | 16.09 | 177.68 |
| SBFC Finance Limited | 10,186.40 | 10 | 36.64 | 2.35 | 2.30 | 8.53 | 25.87 |
| CreditAccess Grameen Limited | 51,666.70 | 10 | 13.12 | 90.88 | 90.41 | 5.01 | 1,809.93 |
| Fusion Micro Finance Limited | 23,167.30 | 10 | 6.21 | 50.30 | 50.11 | 17.74 | 281.93 |
| Bajaj Finance Limited | 549,694.90 | 2 | 30.93 | 236.89 | 235.98 | 18.84 | 1,239.03 |
| Cholamandalam Investment and Finance Company Limited | 191,396.20 | 2 | 36.22 | 41.17 | 41.06 | 17.46 | 233.26 |
| Poonawalla Fincorp Limited | 31,090.10 | 2 | 17.81 | 21.89 | 21.63 | 20.60 | 105.44 |
| MAS Financial Services | 12,791.60 | 10 | 18.55 | 15.31 | 15.31 | 14.08 | 108.71 |
Northern Arc Capital Ltd IPO Objective
The main objective of Northern Arc Capital Limited is to meet future capital requirements towards onward lending.
Northern Arc Capital IPO Risks And Challenges
Northern Arc Capital Limited’s risk includes borrower delays or defaults, which can increase non-performing assets and impact financial health. With no identifiable promoter, its equity shares face a six-month lock-in with specific exemptions.
- Through a diversified business model across sectors, products, and geographies, the company enables credit via lending, placements, and fund management while managing risks related to market, liquidity, credit, and conflicts of interest.
- Delays or defaults by borrowers, including Originator Partners and Direct to Customer Borrowers, can increase non-performing assets, impacting the company’s financial health, cash flows, and operations due to credit risks and economic conditions.
- Under SEBI regulations, the company has no identifiable promoter. Its equity shares will be locked in for six months after allocation, except for specific exemptions related to employee ESOPs, Offers for Sale, and institutional investors.
Northern Arc Capital Ltd IPO – Industry & Market Potential
India’s retail credit market reached Rs—75.2 trillion in Fiscal 2024, growing at a 16% CAGR since 2020. Expected to grow 17-18% annually until 2026, reaching Rs. 100.9 trillion, driven by post-pandemic recovery and increasing demand.
From Fiscal 2021 to 2024, NBFCs grew key loan segments, raising ₹7.4 trillion. CRISIL projects ₹10.2 trillion in funding required by NBFCs from Fiscal 2025 to 2027, supported by equity, debt, and securitization, with strong investor interest.
The personal loan outstanding reached ₹12.2 trillion in Fiscal 2024 and is projected to surpass ₹18.5 trillion by Fiscal 2027, driven by technology, changing consumption patterns, improved customer income profiles, and retail loan growth over wholesale segments.
Northern Arc Capital Limited IPO – Type of Offer
Northern Arc Capital Limited plans a fresh issue of shares, seeking INR 500 crores to meet future capital requirements toward onward lending. Additionally, the company proposes an offer for sale, intending to sell 1.05 crore existing shares.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 500 crores. The company intends to utilize the proceeds from the fresh issue to meet future capital requirements toward onward lending.
- Offer for sale: Northern Arc Capital Limited is offering to sell 1.05 crore existing shares.
Northern Arc Capital IPO Offer Size
The offer size of Northern Arc Capital Limited is INR 777 crores, consisting of a fresh issue of 1.90 crore shares worth INR 500 crores and an offer to sell 1.05 crore existing shares for INR 277 crores. The company seeks funds to meet future capital requirements toward onward lending.
Northern Arc Capital Limited IPO Allotment Structure
Northern Arc Capital Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
Read more about Northern Arc Capital Limited IPO Allotment Status
How to apply for Northern Arc Capital IPO?
To apply for the Northern Arc Capital Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Northern Arc Capital Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Northern Arc Capital Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
Read more about Northern Arc Capital Limited IPO Day 1 Subscription
How do you check Northern Arc Capital IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Northern Arc Capital Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Northern Arc Capital Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Northern Arc Capital Limited IPO:
● Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Northern Arc Capital Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Read more about Northern Arc Capital Limited IPO Day 2 Subscription
Northern Arc Capital Ltd IPO Offer Registrar
The registrar for the Northern Arc Capital Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFin Technologies Limited
Selenium Tower-B Plot No. 31 & 32,
Financial District Nanakramguda,
Serilingampally, Hyderabad – 500 032
Telangana, India
Tel: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
Read more about Northern Arc Capital Limited IPO Day 3 Subscription
Northern Arc Capital IPO – FAQs
1. What is the allotment date of the Northern Arc Capital IPO?
The allotment date of the Northern Arc Capital Limited IPO is September 20, 2024.
2. What is the price band of the Northern Arc Capital IPO?
The price band of the issue is INR 249-263 per share.
3. What is the size of the Northern Arc Capital IPO?
The offer size of Northern Arc Capital Limited is INR 777 crores, consisting of a fresh issue of 1.90 crore shares worth INR 500 crores and an offer to sell 1.05 crore existing shares for INR 277 crores. The company seeks funds to meet future capital requirements toward onward lending.
4. What is the listing date of the Northern Arc Capital IPO?
The listing date of Northern Arc Capital Limited’s IPO is September 24, 2024.
