Northern Arc Capital IPO Details
The ₹777 crore book-built issue of Northern Arc Capital consists of an offer to sell 1.05 crore shares, priced at ₹277 crores, and a new issue of 1.9 crore shares, valued at ₹500 crores.
Key Dates
- Bidding Period: September 16, 2024 – September 19, 2024
- Allotment Date: September 20, 2024
- Listing Date: September 24, 2024
- Cost range: ₹249 to ₹263 for each share
- Minimum Lot Size: 57 shares (₹14,991 for retail investors)
Investment Details
- Small and Medium NII (sNII): Minimum 14 lots (798 shares) totaling ₹209,874
- Big NII (bNII): Minimum 67 lots (3,819 shares) totaling ₹1,004,397
ICICI Securities Limited, Axis Bank Limited, and Citigroup Global Markets India Private Limited are the book running lead managers.
Registrar: Kfin Technologies Limited
Refer to the Northern Arc Capital IPO RHP for more detailed information.
Northern Arc Capital IPO Summary
| Category | Details |
|---|---|
| IPO Dates | 16 September 2024 – 19 September 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹249 to ₹263 per share |
| Lot Size | 57 shares |
| Total Issue Size | 29,543,727 shares (up to ₹777.00 Cr) |
| Fresh Issue | 19,011,407 shares (up to 500,000,000 rupees) |
| Offer for Sale | Shares: 10,532,320 (up to ₹277.00 Cr) |
| Employee Discount | ₹24 per share |
| Issue Type | Book Built Issue IPO |
| Listing | BSE, NSE |
| Pre-Issue Shareholding | 142,314,010 |
| Post-Issue Shareholding | 161,325,417 |
IPO Reservation Breakdown
The Northern Arc Capital IPO offers 2,90,06,785 shares across different categories:
- QIB: 58,01,354 shares (20%)
- NII: 43,51,016 shares (15%)
- Retail Investors: 1,01,52,384 shares (35%)
- Anchor Investors: 87,02,031 shares (30%)
Tentative IPO Timeline
- IPO Open Date: September 16, 2024
- IPO Close Date: September 19, 2024
- Basis of Allotment: September 20, 2024
- Initiation of Refunds: September 23, 2024
- Shares credited to Demat: on September 23, 2024
- Listing Date: September 24, 2024
- UPI Mandate Confirmation Cut-off: 5 PM on September 19, 2024
Lot Size and Investment Overview
A minimum of 57 shares, as well as multiples of those shares, are up for bid. Below is the investment breakdown for retail and HNI categories:
| Category | 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 |
Company Overview
Founded in 2009, Northern Arc Capital Limited focuses on providing retail loans to underserved households and businesses in India. The company has a diversified business model across various sectors and has facilitated over ₹1.73 trillion in financing, impacting over 101.82 million people across the country. Its expertise includes MSME finance, microfinance, consumer finance, and more.
Northern Arc Capital IPO GMP Today Price
Northern Arc Capital shares are currently trading at a grey market premium (GMP) of ₹126-128, as reported by multiple platforms monitoring grey market activities. This strong GMP suggests a potential listing premium of nearly 50% when the shares debut on the stock market next week.
On Tuesday, September 24, Northern Arc Capital’s shares will be ready to go public.
The IPO features a fresh equity issuance valued at ₹500 crore, alongside an offer for sale (OFS) of up to 1,05,32,320 equity shares worth ₹277 crore at the upper price band. This brings the total size of the issue to ₹777 crore.
Proceeds from the fresh issue will be directed toward the company’s future capital requirements, primarily for onward lending.
Registered with the Reserve Bank of India (RBI) as a systemically important non-deposit-taking non-banking financial company (NBFC), Northern Arc has been a significant player in the financial inclusion sector for over a decade. The company operates as a diversified NBFC, with its business model spanning multiple sectors, products, geographies, and borrower categories. It aims to provide credit access to underserved households and businesses, both directly and through partnerships with originator companies.
As Northern Arc prepares for its stock market debut, the favorable GMP reflects strong investor sentiment and anticipation surrounding the company’s performance. The strategic use of funds raised through the IPO is expected to bolster its lending capabilities and further enhance its footprint in the financial inclusion space.
Financial Highlights
For the year ending March 31, 2024, Northern Arc Capital reported:
- Revenue: ₹1,906.03 crores (up 45% YoY)
- Revenue After Tax: ₹317.69 crores, up 31% year over year
Key Financial Metrics
- Debt/Equity Ratio: 3.9
- Return on Net Worth (RoNW): 13.32%
IPO Recommendation
With steady rises in both revenue and profit, Northern Arc Capital is seen as a niche player in the diverse financial services industry. Analysts recommend considering this IPO for medium to long-term investment.
Subscription Status
As of September 19, 2024, the IPO has been subscribed 117.19 times overall, with significant interest from all categories.
Contact Information
- Northern Arc Capital Limited
Taramani, Chennai – 600 113; No. 1, Kanagam Village, 10th Floor, IITM Research Park
Phone: +91 44 6668 7000
Email: investors@northernarc.com
Website: northernarc.com
Registrar Contact
- Kfin Technologies Limited
Phone: 04067162222, 04079611000
Email: nacl.ipo@kfintech.com
Website: Kfintech
For more insights, please refer to the detailed prospectus.