Northern Arc Capital is scheduled to hit the market on September 16, 2024 and close on September 19, 2024. Northern Arc Capital plans to raise around ₹777.00 Cr through an IPO with a sale of up to 29,543,727 equity shares of ₹10 each. The Retail offered 35%, QIB Shares Offered 50%, HNI Shares Offered 15%.
Northern Arc Capital Limited, founded in 2009, provides retail loans to underserved households and businesses in India. By March 31, 2024, the company has facilitated financing worth over Rs. 1.73 trillion, helping more than 101.82 million people across the country. They focus on various sectors, including micro, small, and medium enterprises (MSME), microfinance (MFI), consumer finance, vehicle finance, affordable housing finance, and agriculture finance. With years of experience in these areas, Northern Arc Capital uses a multi-channel approach to serve the retail lending market.
Their services include lending directly to customers and through partner companies, with an asset under management (AUM) of Rs. 117,100.19 million across 671 districts in India. They also enable loans for partners through various financing products with an AUM of Rs. 1,019,038.92 million. Additionally, they manage funds with a volume of Rs. 120,785.58 million across different investment funds. The company has developed a technology suite that supports their operations, including platforms for debt processing and loan underwriting. As of March 31, 2024, Northern Arc Capital employed 2,695 permanent staff.
Northern Arc Capital IPO Details
Northern Arc Capital IPO opens on September 16, 2024, and closes on September 19, 2024. The Listing date for Northern Arc Capital IPO is on September 24, 2024. The price band for IPO is ₹249 to ₹263 per share and lot size of 57 Shares.
| IPO Date | September 16, 2024 to September 19, 2024 |
| Listing Date | September 24, 2024 |
| Price | ₹249 to ₹263 per share |
| Lot Size | 57 Shares |
| Issue Size | ₹777.00 Cr |
| Face Value | ₹10 per share |
Northern Arc Capital IPO Tentative Timetable
Northern Arc Capital opening date is September 16, 2024 and close date is September 19, 2024. The IPO allotment date is September 20, 2024. Therefund initiation of IPO is on September 23, 2024. The credit of shares in demat account is on September 23, 2024. The listing date is on September 24, 2024.
| Event | Date |
|---|---|
| IPO Opening | September 16, 2024 |
| IPO Closing | September 19, 2024 |
| IPO Allotment Date | September 20, 2024 |
| Refund Initiation | September 23, 2024 |
| Shares Credit to Demat | September 23, 2024 |
| Lisiting Date | September 24, 2024 |
Northern Arc Capital IPO Lot Size
Lot Size of this IPO is 57 shares. A retail-individual investor can apply for up to 13 lots (741 shares or ₹194,883).
| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail(Minimum) | 1 | 57 | ₹14,991 |
| Retail(Maximum) | 13 | 741 | ₹194,883 |
| S-HNI (Minimum) | 14 | 798 | ₹209,874 |
| B-HNI (Minimum) | 67 | 3,819 | ₹1,004,397 |
Northern Arc Capital IPO Promoter Holding
| Pre Issue Share Holding | |
| Post Issue Share Holding |
Northern Arc Capital IPO Review
The company is launching its first combo IPO, which includes a new issue of equity shares worth Rs. 500 crores (about 19,011,407 shares at the highest price). There will also be an Offer for Sale (OFS) of 10,532,320 equity shares, valued at Rs. 277 crores at the highest price.
On the financial performance front, for the last three fiscals, the company has (on a consolidated basis) posted a total income/net profit of Rs. 916.55 cr. / Rs. 181.94 cr. (FY22), Rs. 1311.20 cr. / Rs. 242.21 cr. (FY23), and Rs. 1906.03 cr. / Rs. 317.69 cr. (FY24). Its debt equity ratio stood at 3.90 as of March 31, 2024.
For the last three fiscals, the company has posted an average EPS of Rs. 29.18 (basic) and an average RoNW of 12.24%. The issue is priced at a P/BV of 1.49 based on its NAV of Rs. 177.06 as of March 31, 2024, and at a P/BV of 1.40 based on its post-IPO NAV of Rs. 187.97 per share (at the upper cap).
If we attribute FY24 annualized earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 13.36. Based on FY23 earnings, the P/E stands at 17.52. Thus the issue relatively appears reasonably priced.
The company reported net interest income of 5.53% (FY22), 6.48% (FY23), 8.33% (FY24) and profit margins of 2.60%, 2.73%, 2.97% respectively for the referred periods.
According to the offer document, the company has listed its peers as Five Star Business, SBFC Finance, CreditAccess Grameen, Fusion Micro, Bajaj Finance, Cholamandalam Investment, Poonawalla Fincorp, and MAS Financial. Their Price-to-Earnings (P/E) ratios are 24.3, 33.6, 13.4, 8.9, 31.5, 36.2, 25.5, and 19.4 as of September 13, 2024. However, these companies may not be completely comparable with each other.
The company focuses on specialized financial services and has shown consistent growth in both its sales and profits over the reported periods. Based on its earnings for FY24, the company looks fairly priced. It has good potential for future growth. Investors can consider investing for the medium to long term.
Northern Arc Capital IPO Subscription Status (Bidding Details)
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Northern Arc Capital IPO FAQs
What is Northern Arc Capital IPO?
Northern Arc Capital is issuing 29,543,727 equity shares with a face value of ₹10 each, totaling up to ₹777.00 Cr. The shares are being offered at a price of ₹249 to ₹263 each, with a minimum order quantity of 57 shares.
Kfin Technologies Limited is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.
When Northern Arc Capital IPO will open?
Northern Arc Capital will open on September 16, 2024 for QIB, NII, and Retail Investors.
When Northern Arc Capital IPO will end?
Northern Arc Capital will end on September 19, 2024.
What is Northern Arc Capital IPO Size?
Northern Arc Capital IPO size is ₹777.00 Cr.
What is Northern Arc Capital IPO Price Band?
Northern Arc Capital price band is ₹249 to ₹263 per share.
What is Northern Arc Capital IPO Allotment Date?
Northern Arc Capital allotment date is September 20, 2024.
What is Northern Arc Capital IPO Listing Date?
Northern Arc Capital listing date is September 24, 2024. The IPO is to be listed on BSE and NSE.
How to Northern Arc Capital IPO through Zerodha?
To apply for the IPO “Northern Arc Capital” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.
How to Apply Northern Arc Capital IPO through Upstox?
To apply for the IPO “Northern Arc Capital” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.
How to check Northern Arc Capital IPO Allotment Status?
For Northern Arc Capital IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.
What is Northern Arc Capital IPO GMP?
You can check out here: Northern Arc Capital IPO GMP. Check all IPO GMP here.