Northern Arc Capital Ltd. was incorporated on March 9, 1989. The company is a diversified financial services platform established to meet the retail credit needs of under-served households and businesses in India.
| Bidding Dates |
|---|
| 16 Sep 2024 - 19 Sep 2024 |
| Subscription |
|---|
| 110.91x Oversubscribed |
| Minimum Investment | Minimum Lot | Maximum Lot | Lot Size | Number of Shares | Issue Price Band | Post Issue Promoter Holding % | Issue Size | IPO Document |
|---|---|---|---|---|---|---|---|---|
| ₹14,193 | 1 | 13 | 57 | 29.5 M | ₹249 - ₹263 | - | ₹7356.4 M - ₹7770.0 M | RHP DOC |
Northern Arc Capital IPO SUBSCRIPTION STATUS
19 Sep '24Northern Arc Capital IPO overall subscription rate was 110.91 times the total available shares
Northern Arc Capital IPO retail subscription rate was 31.08 times in the retail segment
Northern Arc Capital IPO non-institutional investor subscription rate was 142.41 times in the non-institutional investor category
Northern Arc Capital IPO Qualified Institutional Bidder subscription rate was 240.79 times the available shares for Qualified Institutional Bidder
Northern Arc Capital IPO Employees subscription rate was 7.33 times in the Employees category
| Day | Retail Individual Investor | HNI (NII) Investors | Qualified Institutional Buyers | Employees |
|---|---|---|---|---|
| Category Reservation | 35% | 15% | 50% | - |
19 Sep 2024 (Day 4) | 31.08x | 142.41x | 240.79x | 7.33x |
18 Sep 2024 (Day 3) | 18.97x | 50.8x | 0.31x | 4.32x |
17 Sep 2024 (Day 2) | 10.84x | 21.72x | 0.2x | 2.25x |
16 Sep 2024 (Day 1) | 3.86x | 4.47x | 0.02x | 0.92x |
Northern Arc Capital FINANCIALS
| Period | Net Profit (Rs in millions) | Revenue from Operations (Rs in millions) | Cash Flow from Operations (Rs in millions) | Free Cash Flow (Rs in millions) |
| FY24 | 3,176.9 | 18,900.8 | -21,344.5 | -21,481.4 |
| FY23 | 2,422.1 | 13,049.7 | -12,956.5 | -13,063.2 |
| FY22 | 1,819.4 | 9,095.4 | -13,255.0 | -13,378.0 |
Northern Arc Capital IPO SUBSCRIPTION STATUS DETAILS
Northern Arc Capital had 29.5 M shares on offer
Northern Arc Capital IPO offer price was in the range ₹249 - ₹263
Northern Arc Capital IPO minimum Investment was ₹14193
Northern Arc Capital IPO issue size was ₹ 7356.4 M - ₹ 7770.0 M
Northern Arc Capital had a minimum lot size of 57 Shares per application
Northern Arc Capital NUMBER OF SHARES ON OFFER
Northern Arc Capital IPO IMPORTANT DATES
| Issue Open Date | 16 Sep 2024 |
| Issue close Date | 19 Sep 2024 |
| Allotment Date | 20 Sep 2024 |
| Refund Date | 23 Sep 2024 |
| Demat Account Credit Date | 23 Sep 2024 |
| Listing Date | 24 Sep 2024 |
| Listing on Exchange(s) | NSE and BSE |
| Northern Arc Capital Allotment Status | Exchange |
Northern Arc Capital IPO subscription opened on 16 Sep 2024, and closed on 19 Sep 2024
IPO allotment for Northern Arc Capital was finalized on Friday, 20 Sep 2024
IPO listing for Northern Arc Capital was on NSE and BSE on Tuesday, 24 Sep 2024
Northern Arc Capital IPO LISTING GAINS
| Issue Price (adjusted) | 263.0 |
| Listing Open Price | 350.0 |
| Listing Close Price | 323.4 |
| Listing Gain% | 33.1% |
| Current Gain% | 5.0% |
Northern Arc Capital Peer
| Stock | Stock Price | Market Cap (Rs crore) | PE TTM | PEG TTM | PS TTM | ROE% | ROA% | Annual Revenue (Rs crore) | Annual Revenue Growth % | Annual Net Profit (Rs crore) | Annual Net Profit Growth % | EPS TTM | EPS TTM Growth % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Northern Arc Capital Ltd. | 276.2 | 4456.6 | 10.2 | 0.2 | 1.6 | 10.4 | 2.4 | 2700.3 | 14.6 | 406 | 33.3 | 27.2 | 50.4 |
| Bajaj Finance Ltd. | 1078 | 671157.9 | 33.1 | 2 | 7.8 | 16.7 | 3.4 | 81989.5 | 17.6 | 19017.4 | 14.3 | 32.6 | 16.5 |
| Shriram Finance Ltd. | 1115 | 262353.7 | 23.2 | 1.4 | 5.2 | 15.2 | 3.1 | 48192.6 | 15.1 | 10024.2 | 4.9 | 48.1 | 16.8 |
| Jio Financial Services Ltd. | 256.8 | 169568.7 | 82.1 | 3 | 34.6 | 1.2 | 1 | 3542.6 | 70.4 | 1560.9 | -3.2 | 3.1 | 27.2 |
| Cholamandalam Investment & Finance Company Ltd. | 1866.2 | 157282.2 | 27.3 | 0.9 | 4.8 | 17.2 | 2.1 | 31538.7 | 20.6 | 5232.6 | 22.8 | 68.2 | 29.1 |
| Tata Capital Ltd. | 370.3 | 157187.5 | 29.1 | 1 | 4.8 | 10.8 | 1.7 | 31582.6 | 11.3 | 4846.1 | 32.2 | 12.7 | 28.9 |
Northern Arc Capital INFORMATION ON IPO ISSUE
About Northern Arc Capital
Northern Arc Capital Ltd. was incorporated on March 9, 1989. The company is a diversified financial services platform established to meet the retail credit needs of under-served households and businesses in India.
Object of the Issue
- To utilize the net proceeds to meet future capital requirements towards onward lending
- To receive the benefits of listing the equity shares on the stock exchanges, enhancement of the company’s brand name, and creation of a public market for its equity shares in India
Northern Arc Capital Book running lead manager
ICICI Securities Limited
northernarc.ipo@icicisecurities.com
Axis Capital Limited
northernarc.ipo@axiscap.in
Citigroup Global Markets India Private Ltd.
Northernarcipo@citi.com
Northern Arc Capital Registrar to the offer
KFin Technologies Limited
nacl.ipo@kfintech.com
Northern Arc Capital Strengths
Large ecosystem of partners
The company has served India's retail credit market for over 14 years, facilitating Rs 1.5 trillion in financing and impacting 80.6 million lives. It has built a network of 306 Originator Partners, 48 Retail Lending Partners, and 1,007 Investor Partners.
Proprietary technology product
The company is a technology-driven financial services platform with in-house technology solutions, supporting a scalable business model that enables growth and revenue expansion.
Diversified sources of funding
The company maintains a well-diversified funding profile, supported by strong relationships with lenders and investors, proactive liquidity management, and a solid credit rating. Its broad base of lenders, including banks, offshore institutions, and NBFCs, ensures reliable funding.
Northern Arc Capital Risks
High credit risk borrowers
The company's operations involve direct and indirect exposure to high credit-risk borrowers in under-served households and businesses in India. Large-scale defaults in this segment could negatively impact its business, operations, cash flow, and financial condition.
Interest rate risk
The company's financial performance is sensitive to interest rate risk, and failure to manage this risk could negatively impact its net interest income, operations, and cash flow.
Dependent on third parties
The company relies on third parties for support functions, and any service disruptions or deficiencies could negatively impact its business, reputation, operations, cash flow, and financial condition.
IPO FAQs
This IPO consists of an offer for sale of up to Rs 277.0 crore, of 10,532,320 shares. It also consists of a fresh issue of Rs 500.0 crore.
The category allocation of qualified institutional buyers is 50.0%, the category allocation of non individual investors or high networth individuals is 15.0% and for retail investors it is 35.0%.
The price band of the IPO is Rs 249.0 - 263.0.
The IPO application opens on Sep 16, 2024 and closes on Sep 19, 2024.
The minimum lot size for the IPO is 57. The maximum lot size for the IPO is 741.
For all category investors, the minimum application amount for this IPO is Rs. 14,193.0, the maximum value for this IPO is Rs 194,883.0.
This IPO will be allotted on Sep 20, 2024.
The refund will be credited to your account on Sep 23, 2024.
The allotted shares will be credited to your demat on Sep 23, 2024.
Northern Arc Capital Ltd.’s shares listed on the stock exchanges on Sep 24, 2024.