Northern Arc Capital Limited IPO (Northern Arc Capital IPO) Detail, IPO Date, Price, GMP & Allotment 2024

Northern Arc Capital Limited IPO Overview

Northern Arc Capital’s IPO is a book-built issue totaling Rs. 777 crores, consisting of a fresh issue of 1.9 crore shares (Rs. 500 crores) and an offer for sale of 1.05 crore shares (Rs. 277 crores). The IPO opens for subscription from September 16 to September 19, 2024, with a tentative listing on the BSE and NSE on September 24. The price band is set between ₹249 to ₹263 per share, and the minimum investment for retail investors is 57 shares (₹14,991).

The issue reserves 590,874 shares for employees at a Rs. 24 discount. ICICI Securities, Axis Bank, and Citigroup Global Markets India are the lead managers, with Kfin Technologies serving as the registrar. For detailed information, refer to the Northern Arc Capital IPO RHP.

Northern Arc Capital Limited IPO Important dates

Northern Arc Capital IPO opens on September 16, 2024, and closes on September 19, 2024.

Northern Arc Capital Limited Financial Performance

Northern Arc Capital Limited IPO Key Performance Indicator

The market capitalization of Northern Arc Capital IPO is Rs 4242.86 Cr. KPI as of March 31, 2024.

Northern Arc Capital Limited IPO Objectives

Northern Arc Capital Limited IPO Lot Size

Investors can bid for a minimum of 57 shares and in multiples thereof. The table below depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amounts.

Northern Arc Capital Limited IPO Details

Northern Arc Capital Limited Company Overview and Services

Northern Arc Capital Limited, founded in 2009, is a financial services provider in India focused on offering retail loans to underserved households and businesses. The company operates a diversified business model across MSME finance, microfinance, consumer finance, vehicle finance, affordable housing finance, and agriculture finance. As of March 31, 2024, it has facilitated financing worth over Rs. 1.73 trillion, reaching more than 101.82 million people across India.

The company serves the retail lending market through a multi-channel approach, including direct lending, collaborations with partners, and a branch network. It manages an Asset Under Management (AUM) of Rs. 117,100.19 million across 671 districts in India and has a total placement AUM of Rs. 1,019,038.92 million. Northern Arc also provides fund management services with Rs. 120,785.58 million under management.

To enhance its operations, Northern Arc Capital uses advanced technology solutions such as Nimbus, nPOS, Nu Score, and AltiFi. With 2,695 employees as of March 31, 2024, Northern Arc Capital is well-positioned for growth, offering investors an opportunity to participate in India’s expanding credit market.

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Northern Arc Capital Limited IPO SWOT Analysis

Strengths:

• Diversified Product Portfolio: Northern Arc Capital offers a range of financial products, including loans, structured finance, and capital market services, catering to various segments such as microfinance, SMEs, and affordable housing. This diversification helps mitigate risks.
• Strong Market Presence: The company has established a solid presence in the Indian financial services sector, with a vast network of clients and partnerships, which can attract investors looking for exposure to the financial market.
• Robust Risk Management Framework: Northern Arc Capital has a comprehensive risk management system to assess and mitigate risks, which is crucial for the financial industry.
• Experienced Leadership: A team of seasoned professionals with experience in finance and banking provides strategic direction and management expertise.

Weaknesses:

• High Dependence on Borrowings: A significant portion of the company’s funding comes from borrowings, which could lead to higher interest expenses and financial vulnerability in volatile market conditions.
• Exposure to Credit Risk: As a lender, Northern Arc Capital is exposed to credit risks from its borrowers, especially those in high-risk sectors like microfinance and SMEs.
• Limited Geographical Diversification: The company primarily operates within India, which limits its growth potential and exposes it to country-specific risks.

Opportunities:

• Growing Financial Inclusion in India: With government initiatives promoting financial inclusion, there is significant potential for growth in lending to underserved and unbanked populations.
• Expansion of Digital Platforms: Leveraging technology to expand digital platforms could enhance customer reach, reduce costs, and improve operational efficiency.
• Rising Demand for Credit: Increased demand for credit in India, especially from small and medium enterprises (SMEs), provides growth opportunities for Northern Arc Capital.
• Potential for Strategic Partnerships: Collaborations with banks, NBFCs, and fintech companies can help the company expand its reach and diversify its portfolio.

Threats:

• Regulatory Risks: Changes in regulatory policies or tightening of credit norms by the Reserve Bank of India (RBI) could impact the company’s operations.
• Macroeconomic Instability: Economic downturns, inflation, or changes in interest rates can affect the company’s financial performance.
• Intense Competition: The financial services sector in India is highly competitive, with numerous banks, NBFCs, and fintech companies vying for market share.
• Credit Default Risks: Increased defaults or delays in repayments by borrowers, especially in economically challenging times, could adversely affect the company’s profitability and reputation.

Northern Arc Capital Limited IPO GMP Details

The  GMP for Northern Arc Capital IPO has started from 2 sessions.

Stay tuned to learn more about Northern Arc Capital IPO’s daily performance and expected listing price.

GMP Date	IPO Price	GMP	Sub2 Sauda Rate	Estimated Listing Price	Last Updated
11-09-2024	263.00	₹0	—	₹263 (0%)	11-Sep-2024
10-09-2024		₹0	—	₹ (0%)	10-Sep-2024

Northern Arc Capital Limited IPO subscription status 

Note that the bidding starts at 10 AM and ends at 5 PM on the days when the public issue is open.

Northern Arc Capital Limited IPO  Allotment status 

The allotment status of Northern Arc Capital IPO is expected to be available on September 20, 2024.

Northern Arc Capital IPO allotment status is not available at this time. Northern Arc Capital IPO – The allotment status will be available once the basis of allotment is finalized. Please revisit us to check the latest updates for Northern Arc Capital Limited’s IPO allotment status.

To check Northern Arc Capital’s IPO allotment status, follow the steps below:

1. Click on the below allotment status check button.
2. Select Company Name.
3. Enter your PAN Number, Application Number or DP Client ID (Anyone).
4. Click on Search.

On securing the allotment, you will receive the credit of equivalent shares in your Demat account.

If you have any concerns or queries about the allotment status, contact Kfin Technologies Limited either by phone or email. Investors can call on 04067162222, 04079611000, or send an email with all relevant details to nacl.ipo@kfintech.com.

Northern Arc Capital Limited Contact Details

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/

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Disclaimer: Investing in Initial Public Offerings (IPOs) involves substantial risk, and financial returns are not guaranteed. The information provided should not be construed as financial or investment advice. Prospective investors are advised to consider their financial situation, investment objectives, and risk tolerance before participating in an IPO. It is recommended to consult with a qualified financial advisor or professional before making any investment decisions. Past performance is not indicative of future results. Investments in IPOs may be subject to market risk, including the potential loss of principal.