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Northern Arc Capital IPO is a book build issue of ₹777.00 crores. The issue is a combination of fresh issue of 1.91 crore shares aggregating to ₹500.50 crores and offer for sale of 1.05 crore shares aggregating to ₹276.50 crores.
Northern Arc Capital IPO bidding started from Sep 16, 2024 and ended on Sep 19, 2024. The allotment for Northern Arc Capital IPO was finalized on Sep 20, 2024. The shares got listed on BSE, NSE on Sep 24, 2024.
Northern Arc Capital IPO price band is set at ₹263.00 per share . The lot size for an application is 57. The minimum amount of investment required by an retail is ₹14,193 (57 shares). The lot size investment for sNII is 14 lots (798 shares), amounting to ₹2,09,874, and for bNII, it is 67 lots (3,819 shares), amounting to ₹10,04,397.
The issue includes a reservation of up to 5,90,874 shares for employees offered at a discount of ₹24.00 to the issue price.
ICICI Securities Ltd. is the book running lead manager and Kfin Technologies Ltd. is the registrar of the issue.
Refer to Northern Arc Capital IPO RHP for detailed Information.
| IPO Date | September 16, 2024 to September 19, 2024 |
| Listing Date | September 24, 2024 |
| Face Value | ₹10 per share |
| Issue Price Band | ₹249 to ₹263 per share |
| Issue Price Final | ₹263 per share |
| Lot Size | 57 Shares |
| Sale Type | Fresh Capital-cum-Offer for Sale |
| Total Issue Size | 2,95,97,646 shares (aggregating up to ₹777.00 Cr) |
| Fresh Issue | 1,90,65,326 shares (aggregating up to ₹500.50 Cr) |
| Offer for Sale | 1,05,32,320 shares of ₹10 (aggregating up to ₹276.50 Cr) |
| Employee Discount | ₹24.00 |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 14,23,14,010 shares |
| Share Holding Post Issue | 16,13,25,417 shares |
Northern Arc Capital IPO offers total 2,95,97,646 shares. Out of which 1,45,03,385 (49.00%) allocated to QIB, 58,01,354 (19.60%) allocated to QIB, 43,51,016 (14.70%) allocated to NII, 1,01,52,371 (34.30%) allocated to RII and 87,02,031 (29.40%) allocated to Anchor investors.
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| QIB Shares Offered | 1,45,03,385 (49.00%) | NA |
| − Anchor Investor Shares Offered | 87,02,031 (29.40%) | NA |
| − QIB (Ex. Anchor) Shares Offered | 58,01,354 (19.60%) | NA |
| NII (HNI) Shares Offered | 43,51,016 (14.70%) | NA |
| − bNII > ₹10L | 29,00,677 (9.80%) | 3,634 |
| − sNII < ₹10L | 14,50,339 (4.90%) | 1,817 |
| Retail Shares Offered | 1,01,52,371 (34.30%) | 1,78,111 |
| Employee Shares Offered | 5,90,874 (2.00%) | NA |
| Total Shares Offered | 2,95,97,646 (100.00%) |
| Application Category | Maximum Bidding Limits | Bidding at Cut-off Price Allowed |
|---|---|---|
| Only RII | Up to Rs 2 Lakhs | Yes |
| Only sNII | Rs 2 Lakhs to Rs 10 Lakhs | No |
| Only bNII | Rs 10 Lakhs to NII Reservation Portion | No |
| Only employee | Yes | |
| Employee + RII/NII |
|
Yes for Employee and RII/NII |
Northern Arc Capital IPO raises ₹228.86 crore from anchor investors. Northern Arc Capital IPO Anchor bid date is September 13, 2024. Northern Arc Capital IPO Anchor Investors list
| Bid Date | September 13, 2024 |
| Shares Offered | 87,02,031 |
| Anchor Portion Size (In Cr.) | 228.86 |
| Anchor lock-in period end date for 50% shares (30 Days) | October 19, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | December 18, 2024 |
Northern Arc Capital IPO opens on September 16, 2024, and closes on September 19, 2024.
| IPO Open Date | Mon, Sep 16, 2024 |
| IPO Close Date | Thu, Sep 19, 2024 |
| Tentative Allotment | Fri, Sep 20, 2024 |
| Initiation of Refunds | Mon, Sep 23, 2024 |
| Credit of Shares to Demat | Mon, Sep 23, 2024 |
| Tentative Listing Date | Tue, Sep 24, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on Thu, Sep 19, 2024 |
Investors can bid for a minimum of 57 shares and in multiples thereof. The following table depicts the minimum and maximum investment by Individual Investors (Retail) and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 57 | ₹14,991 |
| Retail (Max) | 13 | 741 | ₹1,94,883 |
| S-HNI (Min) | 14 | 798 | ₹2,09,874 |
| S-HNI (Max) | 66 | 3,762 | ₹9,89,406 |
| B-HNI (Min) | 67 | 3,819 | ₹10,04,397 |
Northern Arc Capital Limited was founded in 2009 and offers retail loans to underserved households and businesses in India.
Northern Arc Capital's business model is diversified across different offerings, sectors, products, geographies, and borrower categories. As of March 31, 2024, the company has facilitated over Rs. 1.73 trillion worth of financing, reaching out to over 101.82 million people across India.
The company has expertise in lending across various focus sectors in India, especially in micro, small, and medium enterprise (MSME) finance, microfinance (MFI), consumer finance, vehicle finance, affordable housing finance, and agriculture finance. The company has been active in MSME finance for over 14 years, MFI finance for 15 years and consumer finance for nine years.
The company serves the retail lending market through a multi-channel approach that includes:
The company also has an end-to-end integrated technology product suite customized to multiple sectors. This includes an in-house technology stack consisting (i) Nimbus, a curated debt platform that enables end-to-end processing of debt transactions; (ii) nPOS, a co-lending and co-origination technology solution based on application programming interfaces (API); (iii) Nu Score, a customized machine learning based analytical module designed to assist originator partners in the loan underwriting process; and (iv) AltiFi, an alternative retail debt investment platform.
As of March 31, 2024, the company had 2,695 permanent employees.
Northern Arc Capital Limited's revenue increased by 45% and profit after tax (PAT) rose by 31% between the financial year ending with March 31, 2024 and March 31, 2023.
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 11,707.66 | 9,371.57 | 7,974.12 |
| Total Income | 1,906.03 | 1,311.2 | 916.55 |
| Profit After Tax | 317.69 | 242.21 | 181.94 |
| Net Worth | 2,314.35 | 1,955.39 | 1,739.04 |
| Reserves and Surplus | 2,123.37 | 1,784.22 | 1,555.3 |
| Total Borrowing | 9,047.76 | 7,034.57 | 5,982.96 |
| Amount in ₹ Crore | |||
The market capitalization of Northern Arc Capital IPO is ₹4242.86 Cr.
KPI as of Sun, Mar 31, 2024.
| KPI | Values |
|---|---|
| Debt/Equity | 3.90 |
| RoNW | 13.32% |
| Price to Book Value | 1.49 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS Rs | 22.32 | 19.69 |
| P/E (x) | 11.78 | 13.36 |
The company proposes to utilize the Net Proceeds to meet future capital requirements toward onward lending.
[Dilip Davda] The company is a niche player on diversified financial services platforms. It has posted steady growth in its top and bottom lines for the reported periods. Based on FY24 earnings, the issue relatively appears reasonably priced. The company is poised for bright prospects ahead. Investors may park funds for the medium to long term. Read detail review...
| Listing Date | September 24, 2024 |
| BSE Script Code | 544260 |
| NSE Symbol | NORTHARC |
| ISIN | INE850M01015 |
| Final Issue Price | ₹263 per share |
| NSE Listing Group | EQ (Rolling) |
| BSE Listing Group | B |
Northern Arc Capital Ltd.
No. 1, Kanagam Village 10th Floor,
10th Floor, IITM Research Park Taramani,
Chennai - 600 113
Chennai, Tamil Nadu
Phone: +91 44 6668 7000
Email: investors@northernarc.com
Website: http://www.northernarc.com/
Kfin Technologies Ltd.
Phone: 04067162222, 04079611000
Email: nacl.ipo@kfintech.com
Website: https://ipostatus.kfintech.com/
Northern Arc Capital IPO is a main-board IPO of 2,95,97,646 equity shares of the face value of ₹10 aggregating up to ₹777.00 Crores. The issue is priced at ₹263 per share. The minimum order quantity is 57.
The IPO opens on September 16, 2024, and closes on September 19, 2024.
Kfin Technologies Ltd. is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.
Zerodha customers can apply online in Northern Arc Capital IPO using UPI as a payment gateway. Zerodha customers can apply in Northern Arc Capital IPO by login into Zerodha Console (back office) and submitting an IPO application form.
Steps to apply in Northern Arc Capital IPO through Zerodha
Visit Zerodha IPO Application Process Review for more detail.
The Northern Arc Capital IPO opens on September 16, 2024 and closes on September 19, 2024.
Northern Arc Capital IPO lot size is 57, and the minimum amount required for application is ₹14,991.
You can apply in Northern Arc Capital IPO online using either UPI or ASBA as a payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO Application is offered by brokers who don't offer banking services. Read more detail about applying IPO online through Zerodha, Upstox, 5Paisa, Nuvama, HDFC Bank, and SBI Bank.
The finalization of Basis of Allotment for Northern Arc Capital IPO will be done on Friday, September 20, 2024, and the allotted shares will be credited to your demat account by Monday, September 23, 2024. Check the Northern Arc Capital IPO allotment status.
The Northern Arc Capital IPO listing date is on Tuesday, September 24, 2024.
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