Northern Arc Capital Limited 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:
- Lending: Extending financing from the company’s balance sheet (Lending) to originator partners in the form of loans or investments in their debt to enable on-lending to retail customers (Intermediate Retail Lending) and directly to underserved households and businesses (Direct-to-Customer Lending) either in collaboration with retail lending partners or through the branch network to offer rural finance and MSME loans, with AUM of Rs. 117,100.19 million across 671 districts, 28 states and seven union territories in India, as of March 31, 2024;
- Placements: Enabling loans to originator partners through various financing products (placements) with a total AUM of Rs. 1,019,038.92 million as of March 31, 2024; and
- Fund Management: Managing debenture funds and providing portfolio management services (fund management) with a total volume of Rs. 120,785.58 million spread across 10 alternative investment funds (AIFs) and three portfolio management service funds (PMS) as of March 31, 2024.
The company also has an end-to-end integrated technology product suite customized to multiple sectors.
This includes an in-house technology stack consisting:
- Nimbus, a curated debt platform that enables end-to-end processing of debt transactions;
- nPOS, a co-lending and co-origination technology solution based on application programming interfaces (API);
- Nu Score, a customized machine learning based analytical module designed to assist originator partners in the loan underwriting process;
- AltiFi, an alternative retail debt investment platform.
As of March 31, 2024, the company had 2,695 permanent employees.
Northern Arc Capital IPO – Details
| IPO Opening Date | 16 September 2024 |
| IPO Closing Date | 19 September 2024 |
| Issue Type | Book Built Issue IPO |
| Issue Size | Total Issue Size: 2,95,43,727 Shares Worth ₹777.00 Crore Fresh Issue: 1,90,11,407 Shares Worth ₹500.00 Crore Offer For Sale: 1,05,32,320 Shares Worth ₹277.00 Crore |
| Face Value | ₹10 per equity share |
| IPO Price | ₹249 – ₹263 per share |
| Market Lot | 57 Shares |
| Min Order | 57 Shares (1 Lot) |
| Employee Discount | ₹24 |
| Listing At | BSE, NSE |
| Register | Kfin Technologies Limited |
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Northern Arc Capital IPO – Date Schedule
| IPO Open Date | 16 September 2024 |
| IPO Close Date | 19 September 2024 |
| Basis of Allotment | 20 September 2024 |
| Initiation of Refund | 23 September 2024 |
| Credit of Shares to Demat Account | 23 September 2024 |
| IPO Listing Date | 24 September 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 19, 2024 |
Northern Arc Capital IPO – Lots Size & Price
| 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 |
Competitive Strengths
- Large addressable and underpenetrated market with strong sectoral expertise.
- Large ecosystem of partners and data and technology platform creating strong network effects.
- Proprietary technology product suite transforming the debt market ecosystem.
- Robust risk management based on domain expertise, proprietary risk models and data repository driving asset quality.
- Diversified sources of funding for our own deployment and proactive liquidity management.
- Professional management team supported by an experienced Board and marquee investors driving high standards of governance.
Company Financials
| Particulars | Total Revenue | Total Expense | Profit After Tax | Total Borrowing |
|---|---|---|---|---|
| 31 March 2022 | 916.54 | 668.15 | 181.93 | 5,982.96 |
| 31 March 2023 | 1311.20 | 988.10 | 242.21 | 7,034.57 |
| 31 March 2024 | 1906.03 | 1484.82 | 317.69 | 9,047.76 |
Key Performance Indicator
| KPI | Values |
|---|---|
| Debt/Equity | 3.9 |
| RoNW | 13.32% |
| P/BV | 1.49 |
| Pre IPO | Post IPO | |
| EPS (Rs) | 22.32 | 19.69 |
| P/E (x) | 11.78 | 13.36 |
Object Of The Issue
- The company proposes to utilize the Net Proceeds to meet future capital requirements toward onward lending.
Northern Arc Capital IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 1 | Five-Star Business Finance Limited | 26.76 |
| 2 | 10 | SBFC Finance Limited | 36.64 |
| 3 | 10 | CreditAccess Grameen Limited | 13.12 |
| 4 | 10 | Fusion Micro Finance Limited | 6.21 |
| 5 | 2 | Bajaj Finance Limited | 30.93 |
| 6 | 2 | Cholamandalam Investment and Finance Company Limited | 36.22 |
| 7 | 2 | Poonawalla Fincorp Limited | 17.81 |
| 8 | 10 | MAS Financial Services Limited | 18.55 |
Northern Arc Capital IPO Promoter Holding
| Pre Issue Share Holding | 0% |
| Post Issue Share Holding | 0% |
Northern Arc Capital IPO Prospectus
Company Contact Information
| Northern Arc Capital Limited No. 1, Kanagam Village 10th Floor, 10th Floor, IITM Research Park Taramani, Chennai – 600 113 Phone: +91 44 6668 7000 Email: investors@northernarc.com Website: http://www.northernarc.com/ |
Northern Arc Capital IPO Registrar
| Kfin Technologies Limited Phone: 04067162222, 04079611000 Email: nacl.ipo@kfintech.com Website: https://kosmic.kfintech.com/ipostatus/ |
Northern Arc Capital IPO Lead Manager(s)
| 1. ICICI Securities Limited 2. Axis Bank Limited 3. Citigroup Global Markets India Private Limited |
Northern Arc Capital IPO FAQs
| What is Northern Arc Capital IPO? Northern Arc Capital IPO is a main-board IPO. The issue is priced at ₹249 to ₹263 per equity share. The IPO is to be listed on BSE & NSE. |
| When Northern Arc Capital IPO will open? The IPO is to open on 16 September 2024 for QIB, NII, and Retail Investors. |
| What is Northern Arc Capital IPO Investors Portion? The investors’ portion for QIB – 50%, NII – 15%, and Retail – 35%. |
| How to Apply the Northern Arc Capital IPO? You can apply Northern Arc Capital IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form. |
| How to Apply the Northern Arc Capital IPO through Angle One? Log in to Angle One Application with your credentials. Select the IPO. You will see the IPO Name “Northern Arc Capital IPO”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Angle One. |
| How to Apply the Northern Arc Capital IPO through 5 Paisa? Log in to 5 Paisa Application with your credentials. Select the IPO. You will see the IPO Name “Northern Arc Capital IPO“. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with 5 Paisa. |
| How to Apply the Northern Arc Capital IPO through Upstox? Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name “Northern Arc Capital IPO”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox. |
| How to Apply the Northern Arc Capital IPO through IIFL? Log in to IIFL Application with your credentials. Select the IPO. You will see the IPO Name “Northern Arc Capital IPO”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with IIFL. |
| What is Northern Arc Capital IPO Size? Northern Arc Capital IPO size is ₹777.00 Crore. |
| What is Northern Arc Capital IPO Price Band? Northern Arc Capital IPO Price Band is ₹249 to ₹263. |
| What is Northern Arc Capital IPO Minimum and Maximum Lot Size for Retail? The minimum bid is 57 Shares with ₹14,991 amount while the maximum bid is 741 Shares with ₹1,94,883. |
| What is the Northern Arc Capital IPO Allotment Date? Northern Arc Capital IPO allotment date is 20 September 2024. |
| What is the Northern Arc Capital IPO Listing Date? Northern Arc Capital IPO listing date is 24 September 2024. The IPO is to be listed on BSE and NSE. |
