The Northern Arc Capital IPO will open on September 16, 2024, and close on September 19, 2024. It is a Book Built Issue, aiming to raise approximately ₹777 crores. This includes a fresh issue of ₹500 crores and an offer for sale of up to 10,532,320 equity shares, each with a face value of ₹10.
The price band for the Northern Arc Capital IPO is set between ₹249 and ₹263 per share. The allocation includes a 35% quota for retail investors, 50% for Qualified Institutional Buyers (QIB), and 15% for High Net-worth Individuals (HNI). The shares are set to list on the BSE and NSE on September 24, 2024, with the allotment finalized by September 20, 2024.
In 2024, the company reported revenue of ₹1,906.03 crores, up from ₹1,311.2 crores in 2023. The profit for 2024 stood at ₹317.69 crores, an increase from ₹242.21 crores in 2023. Based on its financial performance, the IPO is recommended for long-term investment.
Objectives of Northern Arc Capital IPO:
The company plans to use the net proceeds from the IPO to support its future capital needs, primarily for onward lending.
Northern Arc Capital IPO Review (Should You Apply?):
Review to be updated soon.
Northern Arc Capital IPO Dates & Price Band:
| IPO Open Date: | September 16, 2024 |
| IPO Close Date: | September 19, 2024 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹249 to ₹263 Per Share |
| Issue Size: | Approx ₹777 Crores |
| Fresh Issue: | Approx ₹500 Crores |
| Offer for Sale: | Approx 10,532,320 Equity Shares |
| Issue Type: | Book Built Issue |
| IPO Listing: | BSE & NSE |
| Retail Quota: | Not more than 35% |
| QIB Quota: | Not more than 50% |
| NII Quota: | Not more than 15% |
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Northern Arc Capital IPO Lot Size:
The minimum lot size for the Northern Arc Capital IPO is 57 shares, requiring an investment of ₹14,991. Retail investors can apply for up to 13 lots, which equals 741 shares, amounting to a total investment of ₹194,883.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 57 | ₹ 14,991 |
| Retail Maximum | 13 | 741 | ₹ 1,94,883 |
| S-HNI Minimum | 14 | 798 | ₹ 2,09,874 |
| B-HNI Minimum | 67 | 3,819 | ₹ 10,04,397 |
Northern Arc Capital IPO Timeline:
The Northern Arc Capital IPO will open on September 16 and close on September 19. The allotment will be finalized on September 20, and the shares are expected to be listed on September 24.
| IPO Open Date: | September 16, 2024 |
| IPO Close Date: | September 19, 2024 |
| Basis of Allotment: | September 20, 2024 |
| Refunds: | September 23, 2024 |
| Credit to Demat Account: | September 23, 2024 |
| IPO Listing Date: | September 24, 2024 |
Northern Arc Capital IPO GMP Update:
The Grey Market Premium (GMP) for the Northern Arc Capital IPO has not been reported yet. We will update this information daily, so please check back for the latest updates.
Promoters of Northern Arc Capital IPO:
Information on promoters is currently unavailable.
About Northern Arc Capital:
Northern Arc Capital Limited is a leading financial services platform that caters to the credit needs of underserved households and businesses in India. Over the past 15 years, the company has developed a comprehensive approach to retail credit, covering various sectors.
Northern Arc specializes in financing for micro, small, and medium enterprises (MSMEs), microfinance (MFI), consumer finance, vehicle finance, affordable housing, and agricultural finance. Since its inception in 2009, the company has made significant progress in financial inclusion. As of March 31, 2024, Northern Arc has facilitated financing of over ₹1.73 trillion, impacting more than 101.82 million lives across India.
Recognized as one of India’s leading diversified Non-Banking Financial Companies (NBFCs) in terms of Assets under Management (AUM), the company operates a diverse business model that spans multiple sectors, products, and geographies. Northern Arc has also developed a scalable, tech-driven business model designed to support various sectors.
Northern Arc Capital Financial Report:
Revenue: ₹1,906.03 crores in 2024 (up from ₹1,311.2 crores in 2023)
Profit: ₹317.69 crores in 2024 (up from ₹242.21 crores in 2023)
| Amount in crores | ||||
| Period Ended | Revenue | Expense | Profit After Tax | Assets |
| 2022 | ₹ 916.55 | ₹ 668.16 | ₹ 181.94 | ₹ 7,974.12 |
| 2023 | ₹ 1,311.20 | ₹ 988.10 | ₹ 242.21 | ₹ 9,371.57 |
| 2024 | ₹ 1,906.03 | ₹ 1,484.83 | ₹ 317.69 | ₹ 11,707.66 |
Northern Arc Capital IPO Valuation – FY2024
Key valuation metrics for the Northern Arc Capital IPO include details such as Earnings Per Share (EPS), Price-to-Earnings (P/E) Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV). These metrics provide insights into the company’s financial performance and valuation.
| KPI | Values |
| ROE: | -% |
| ROCE: | -% |
| EBITDA Margin: | -% |
| PAT Margin: | -% |
| Debt to equity ratio: | 3.03 |
| Earning Per Share (EPS): | ₹34.61 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 13.32% |
| Net Asset Value (NAV): | ₹ 177.06 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Five-Star Business Finance | 28.64 | 26.76 | 16.09% | 177.68 | 21,82.85 Cr. |
| Limited (“Five Star”) | |||||
| SBFC Finance Limited | 2.35 | 36.64 | 8.53% | 25.87 | 10,18.64 Cr. |
| (“SBFC”) | |||||
| CreditAccess Grameen Limited | 90.88 | 13.12 | 5.01% | 1,809.93 | 51,66.67 Cr |
| (“CreditAccess”) | |||||
| Fusion Micro Finance Limited | 50.3 | 6.21 | 17.74% | 281.93 | 23,16.73 Cr |
| (“Fusion”) | |||||
| Bajaj Finance Limited (“Bajaj | 236.89 | 30.93 | 18.84% | 1,239.03 | 549,69.49 Cr |
| Finance”) | |||||
| Cholamandalam Investment | 41.17 | 36.22 | 17.46% | 233.26 | 191,39.62 Cr |
| and Finance Company Limited | |||||
| (“Cholamandalam”) | |||||
| Poonawalla Fincorp Limited | 21.89 | 17.81 | 20.60% | 105.44 | 31,09.01 Cr |
| (“Poonawalla”) | |||||
| MAS Financial Services | 15.31 | 18.55 | 14.08% | 108.71 | 12,79.16 Cr |
| Limited (“MAS”) |
Northern Arc Capital IPO Registrar:
- Kfin Technologies Limited
- Phone: 04067162222, 04079611000
- Email: nacl.ipo@kfintech.com
- Website: Kfintech IPO Status
Lead Managers (Merchant Bankers):
- ICICI Securities Limited
- Axis Bank Limited
- Citigroup Global Markets India Private Limited
Company Address:
- Northern Arc Capital Limited
- No. 1, Kanagam Village, 10th Floor,
- IITM Research Park, Taramani,
- Chennai – 600 113
- Phone: +91 44 6668 7000
- Email: investors@northernarc.com
- Website: Northern Arc Capital
Northern Arc Capital IPO FAQs
What is Northern Arc Capital IPO?
Northern Arc Capital IPO is a main-board initial public offering (IPO) through which the company aims to raise ₹777 crores. The price range for each equity share is set between ₹249 and ₹263. The shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
When will Northern Arc Capital IPO open for subscription?
The IPO opens for subscription on September 16, 2024, for Qualified Institutional Buyers (QIB), Non-Institutional Investors (NII), and Retail Investors. It will close on September 19, 2024.
What is the Northern Arc Capital IPO investor portion?
QIBs: 50%
NIIs: 15%
Retail Investors: 35%
How can I apply for the Northern Arc Capital IPO?
You can apply via:
ASBA (Application Supported by Blocked Amount) online through your bank.
ASBA online using UPI through your stockbroker.
Offline by submitting a form through your stockbroker.
What is the issue size of Northern Arc Capital IPO?
The total issue size is ₹777 crores.
What is the price band for Northern Arc Capital IPO?
The price band is set between ₹249 to ₹263 per share.
What is the lot size for Northern Arc Capital IPO?
The minimum bid is 57 shares, with a total investment amount of ₹14,991.
When is the allotment date for Northern Arc Capital IPO?
The allotment date is September 20, 2024.
When is the listing date for Northern Arc Capital IPO?
Shares will be listed on September 24, 2024, on BSE and NSE.