Northern Arc Capital IPO Details GMP Price, Launch Date, share price, Issue Size, Review

OUR BUSINESS

Northern Arc Capital 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, our approach has been to create a differentiated and comprehensive play on the retail credit ecosystem in India spread across sectors.

Since 2009, when we entered the financial inclusion space, we have 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, we 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, we have one of the lowest industry-wide credit costs amongst diversified NBFCs in India, as of March 31, 2023. Northern Arc Capital has developed domain expertise in enabling credit across our focused sectors in India, namely, micro, small, and medium enterprises (“MSMEs”) financing, microfinance (“MFI”), consumer finance, vehicle finance, affordable housing finance, and agricultural finance. We have been operating in the MSME, MFI, and consumer finance sectors for over 13 years, 14 years, and eight years, respectively.

NORTHERN ARC CAPITAL LIMITED IPO DATE & PRICE BAND DETAILS

IPO Open Date February [.], 2024
IPO Close DateFebruary [.], 2024
IPO SizeApprox ₹[.] Crores
IPO Fresh IssueApprox ₹[.] Crores
Offer For SaleApprox ₹[.] Crores
IPO Face Value ₹- Per Equity Share
IPO Price Band[.] to ₹[.]. Per Every Share
IPO Listing OnNSE and BSE
IPO Retail Quota%
IPO QIB Quota%
IPO NII Quota%
IPO DiscountN/A
DRHP DraftClick Here
RHP DraftClick Here
Anchor InvestorClick Here

NORTHERN ARC CAPITAL LIMITED IPO MARKET LOT DETAILS

ApplicationLot SizeSharesAmount
Retail Minimum--₹-
Retail Maximum--₹-
S-HNI Minimum--₹-
B-HNI Minimum--₹-

OBJECTS OF THE OFFER

Northern Arc Capital proposes to utilize the Net Proceeds to meet future capital requirements toward onward lending. Further, Nothern Arc Capital expects to receive the benefits of listing the Equity Shares on the Stock Exchanges, enhancement of our Company’s brand name, and creation of a public market for our Equity Shares in India. The main objects set out in the Memorandum of Association enable our Company to undertake its existing activities and the activities for which funds are being raised through the Fresh Issue.

NORTHERN ARC CAPITAL LIMITED IPO ALLOTMENT & LISTING DATE (DETAILS)

Price Band Announcement[.]
Anchor Investor Allotment[.]
IPO Open Date , 2024
IPO Close Date , 2024
Basis of Allotment[.]
Refunds[.]
Credit to Demat Account[.]
IPO Listing Date , 2024

NORTHERN ARC CAPITAL LIMITED FINANCIAL REPORT

₹ in Crores
YearRevenueExpensePAT
2023₹210.93 ₹180.78 ₹20.49
2022 ₹185.61 ₹160.30 ₹13.69
2021 ₹160.93 ₹147.44 ₹6.30

OUR PROMOTERS

Our Company does not have an identifiable promoter in terms of SEBI ICDR Regulations and the Companies Act, 2013. Consequently, there are no members forming part of the ‘promoter group’ in terms of the SEBI ICDR Regulations.

Principal Shareholders

1. Shareholders who control 15% or more of the voting rights in our Company.

Except for LeapFrog Financial Inclusion India (II) Ltd and Augusta Investments II Pte. Ltd that hold 22.53%, and 19.48% of the paid-up Equity Share capital of our Company, respectively on a fully diluted basis, and the 360 ONE Funds that collectively hold 25.58% of the paid-up Equity Share capital of our Company on a fully-diluted basis as of the date of this Draft Red Herring Prospectus, no shareholder controls 15% or more of the voting rights in our Company. For further details, see “Capital Structure–Notes to Capital Structure -Details of the Shareholding of the major Shareholders of our Company” and “History and Certain Corporate Matters–Shareholders’ Agreements and Other Agreements –Shareholders’ Agreements” on pages 116and 293, respectively.

2. Persons who have the right to appoint a director(s) on our Board of Directors.

QUALITATIVE FACTOR

Some of the qualitative factors which form the basis for computing the Offer Price are:

  • Large addressable and underpenetrated market with strong sectoral expertise. The Indian retail credit market has grown at a strong pace over the last few years and is expected to further grow at a CAGR of 13-15% between fiscal 2023 and 2025 to reach ₹77 trillion by Fiscal 2025. (Source: CRISIL Report)We believe this presents us with an opportunity to capitalize on the large potential for growth in the retail credit market, particularly in the rural and semi-urban areas.
  • Large ecosystem of partners and data and technology platforms creating strong network effects. We have, over the last 14 years, by serving the Indian retail credit market and facilitating financing of over ₹1.50 trillion since 2009, that has impacted over 80.59 million lives, created an ecosystem of 306 Originator Partners, 48 Retail Lending Partners, and 1,007 Investor Partners, as of September 30, 2023, multi-channel offerings comprising Lending, Placements and Fund Management channels, property technology solutions and a substantial data repository of over 27.49 million data points, as of September 30, 2023.
  • .Proprietary technology product suite transforming the debt market ecosystem. We are a technology-driven financial services platform supported by in-house technology solutions and architecture driving a scalable and sustainable business model that enables us to expand and scale our business and drive revenue growth. For further details,
  • Robust risk management based on domain expertise, proprietary risk models, and data repository driving asset quality. We have customized our risk management systems for each of the focused sectors and channels in which we operate and these systems which are specific to each offering, enable us to develop a diversified portfolio and address both risks. We leverage our expertise and data to develop customized and proprietary risk models that suit our offerings, products, and markets, and enhance our capital efficiency.
  • Diversified sources of funding for our deployment and proactive liquidity management. We maintain a well-diversified funding profile that is underpinned by our established relationships with our lenders and investors, proactive liquidity management system, and strong credit rating. Our diversified base of lenders (including various banks, offshore financial institutions, and NBFCs) and investors provide us with a strong base for increased funding.
  • Professional management team supported by an experienced Board and marquee investors driving high standards of governance. We have an experienced leadership team who have played a pivotal role in building our business and brand. We have also benefited and expect to continue to benefit from the strong capital sponsorship and professional expertise, especially in the area of corporate governance and risk management, of our shareholders, which include funds and a global systemically important bank. Professional management team supported by an experienced Board and marquee investors driving high standards of governance”
  • Strong ESG framework integrated into the business model with a focus on creating sustainable impact and climate-smart lending. Our underwriting guidelines along with the ESG policy incorporate a responsible financing framework across parameters such as governance, employee rights, and environment which are applied at multiple stages such as client onboarding, investment or lending, and post-transaction monitoring. Specifically, as part of our relationships with Originator Partners, we also require their adherence to norms on customer protection and fair practice codes including instituting adequate mechanisms for grievance redressal and, fostering fair and respectful treatment of borrowers. Strong ESG framework integrated into the business model with focus on creating sustainable impact and climate-smart lending”.

Basic & Diluted Earnings Per Equity Share (“EPS”)

Financial Year EndedBasic EPS (in ₹)Diluted EPS (in ₹)Weight
202325.8517.383
202219.5213.092
20217,715.351
Weighted Average20.7213.95
Six Months ended Sept 30, 202316.1910.97

NORTHERN ARC CAPITAL LIMITED COMPANY CONTACT DETAILS

No. 1, Kanagam Village
10thFloor, IITM Research Park
Taramani, Chennai 600 013
Tamil Nadu, India
Tel: +91 44 6668 7000
E-mail: investors@northernarc.com
Website: www.northernarc.com

NORTHERN ARC CAPITAL LIMITED IPO REGISTAR

Selenium Tower-B
Plot No. 31 & 32, Financial District
Nanakramguda, Serilingampally
Hyderabad 500 032 Telangana, India
Tel: +91 40 6716 2222
Website: www.kfintech.com
E-mail: nacl.ipo@kfintech.com
Investor grievance e-mail: einward.ris@kfintech.com
Contact Person: M Murali Krishna

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