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11 Nov 2024
Northern Arc Capital Limited IPO, GMP, Details, Price, and Review
Northern Arc Capital Limited is a diversified financial services platform set up primarily with the mission of catering to the diverse retail credit requirements of the under-served households and businesses in India. Over the last 14 years, the company's approach has been to create a differentiated and comprehensive play on the retail credit ecosystem in India spread across sectors.
Since 2009, when they entered the financial inclusion space, NACL has facilitated the financing of over ₹1.50 trillion which has impacted over 80.59 million lives across India, as of September 30, 2023. According to the CRISIL Report, they are one of the leading players amongst India’s diversified NBFCs in terms of Assets under Management (“AUM”) as of March 31, 2023, with a business model diversified across offerings, sectors, products, geographies and borrower categories. Further, they have one of the lowest industry-wide credit costs amongst diversified NBFCs in India, as of March 31, 2023.
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Northern Arc Capital IPO Overview:
- Issue Size: ₹777 crore
- ● Fresh Issue: ₹500 crore (1.9 crore shares)
- ● Offer for Sale: ₹277 crore (1.05 crore shares)
- Subscription Dates: September 16, 2024, to September 19, 2024
- Price Band: ₹249 to ₹263 per share
- Minimum Lot Size: 57 shares
- Lead Managers:
- ● ICICI Securities Limited
- ● Axis Bank Limited
- ● Citigroup Global Markets India Private Limited
- Registrar: Kfin Technologies Limited
WHAT IS GMP?
GMP stands for Grey Market Premium, and if you are planning your IPO then GMP plays an important role. A grey market is a place where stocks/shares get traded before getting officially listed on any stock exchange. The difference between the IPO price and the grey market price is known as GMP (grey market premium). GMP is a premium amount paid at which initial public offering (IPO) shares are traded before it is listed on the stock exchanges.
Northern Arc Capital Limited IPO GMP
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| 24-09-2024 | 263 | 131 (49.81%) | 24-Sep-2024 12:20 |
| 23-09-2024 | 263 | 144 (54.75%) | 23-Sep-2024 12:20 |
| 20-09-2024 | 263 | 125 (47.53%) | 20-Sep-2024 12:10 |
| 19-09-2024 | 263 | 150 (57.03%) | 19-Sep-2024 12:30 |
| 18-09-2024 | 263 | 202 (76.81%) | 18-Sep-2024 12:15 |
| 17-09-2024 | 263 | 190 (72.24%) | 17-Sep-2024 12:55 |
| 16-09-2024 | 263 | 158 (60.08%) | 16-Sep-2024 13:45 |
**The GMP prices displayed here are solely for informational purposes related to the grey market news. India IPO does not engage in or facilitate grey market trading, nor are these rates (sub2) indicative of any trading activity. We also do not recommend or endorse participation in the grey market.**
Northern Arc Capital Limited IPO Overview
| Detail | Description |
|---|---|
| IPO Date | September 16, 2024 to September 19, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price Band | ₹249 to ₹263 per share |
| Lot Size | 57 Shares |
| Total Issue Size | 29,543,727 shares (aggregating up to ₹777.00 Cr) |
| Fresh Issue | 19,011,407 shares (aggregating up to ₹500.00 Cr) |
| Offer for Sale | 10,532,320 shares of ₹10 (aggregating up to ₹277.00 Cr) |
| Employee Discount | Rs 24 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 142,314,010 |
| Shareholding post issue | 161,325,417 |
Northern Arc Capital IPO Timeline (Tentative Schedule)
| Detail | Description |
|---|---|
| IPO Open Date | Monday, September 16, 2024 |
| IPO Close Date | Thursday, September 19, 2024 |
| Basis of Allotment | Friday, September 20, 2024 |
| Initiation of Refunds | Monday, September 23, 2024 |
| Credit of Shares to Demat | Monday, September 23, 2024 |
| Listing Date | Tuesday, September 24, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 19, 2024 |
Northern Arc Capital Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 57 | ₹14,991 |
| Retail (Max) | 13 | 741 | ₹194,883 |
| S-HNI (Min) | 14 | 798 | ₹209,874 |
| S-HNI (Max) | 66 | 3,762 | ₹989,406 |
| B-HNI (Min) | 67 | 3,819 | ₹1,004,397 |
Northern Arc Capital Limited IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Net Offer |
Northern Arc Capital IPO Anchor Investors Details
| Bid Date | September 13, 2024 |
| Shares Offered | 8,702,031 |
| Anchor Portion Size (In Cr.) | 228.86 |
| Anchor lock-in period end date for 50% shares (30 Days) | October 20, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | December 19, 2024 |
Company & Financials
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.
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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.
- ● 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.
Northern Arc Capital Limited Financial Information (Restated Consolidated)
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | |||||||||||||||||||||||||||||||||||||
| Assets | 11,707.66 | 9,371.57 | 7,974.12 | |||||||||||||||||||||||||||||||||||||
| Revenue | 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 | ||||||||||||||||||||||||||||||||||||||||
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 |
Objectives of Northern Arc Capital IPO
The company proposes to utilize the Net Proceeds to meet future capital requirements toward onward lending.
Northern Arc Capital IPO Review
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.
FAQs for Northern Arc Capital IPO
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What is the Northern Arc Capital IPO?
Northern Arc Capital IPO is a main-board IPO. The company is going to raise ₹777 Crores via IPO. The issue is priced at ₹249 to ₹263 per equity share. The IPO is to be listed on BSE & NSE.
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When will the Northern Arc Capital IPO open for subscription?
The IPO is to open on September 16, 2024 for QIB, NII, and Retail Investors. The IPO will close on September 19, 2024.
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What is Northern Arc Capital IPO Investors Portion?
The investors’ portion for QIB is 50%, NII is 15%, and Retail is 35%.
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What is Northern Arc Capital IPO Issue Size?
Northern Arc Capital IPO issue size is ₹777 crores.
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What is the Northern Arc Capital IPO Price Band?
Northern Arc Capital IPO Price Band is ₹249 to ₹263.
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What is Northern Arc Capital IPO Lot Size?
The minimum bid is 57 Shares with ₹14,991 amount.
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What is the Northern Arc Capital IPO Allotment Date?
Northern Arc Capital IPO allotment date is September 20, 2024.
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What is the Northern Arc Capital IPO Listing Date?
Northern Arc Capital IPO listing date is September 24, 2024. The IPO is to be listed on BSE and NSE.
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What is the current GMP of the Northern Arc Capital?
The current GMP of the Northern Arc Capital is 131 (49.81%).
RHP:
RHP of Northern Arc Capital Limited IPO
DRHP:
DRHP of Northern Arc Capital Limited IPO
Anchor Investor Link:
Anchor Investor Link of Northern Arc Capital Limited IPO
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What is the Northern Arc Capital IPO?
Northern Arc Capital IPO is a main-board IPO. The company is going to raise ₹777 Crores via IPO. The issue is priced at ₹249 to ₹263 per equity share. The IPO is to be listed on BSE & NSE.
-
When will the Northern Arc Capital IPO open for subscription?
The IPO is to open on September 16, 2024 for QIB, NII, and Retail Investors. The IPO will close on September 19, 2024.
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What is Northern Arc Capital IPO Investors Portion?
The investors’ portion for QIB is 50%, NII is 15%, and Retail is 35%.
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What is Northern Arc Capital IPO Issue Size?
Northern Arc Capital IPO issue size is ₹777 crores.
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What is the Northern Arc Capital IPO Price Band?
Northern Arc Capital IPO Price Band is ₹249 to ₹263.
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What is Northern Arc Capital IPO Lot Size?
The minimum bid is 57 Shares with ₹14,991 amount.
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What is the Northern Arc Capital IPO Allotment Date?
Northern Arc Capital IPO allotment date is September 20, 2024.
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What is the Northern Arc Capital IPO Listing Date?
Northern Arc Capital IPO listing date is September 24, 2024. The IPO is to be listed on BSE and NSE.
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What is the current GMP of the Northern Arc Capital?
The current GMP of the Northern Arc Capital is 131 (49.81%).
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