IPO

Northern ARC Capital Limited IPO

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Non Banking Financial Company (NBFC)

Listed On: Sep 24, 2024 at ₹ 350.0(NSE)

₹ 14991 /57 Shares

Check Allotment

16 Sep, 2024

Open Date

19 Sep, 2024

Close Date

20 Sep, 2024

Allotment Date

24 Sep, 2024

Listing Date
Price Summary

Last Closing

268.75 (2.19%)

52 Week High

290.00

52 Week Low

141.47

Last Update

24-Oct-2025 3:30 PM
Northern ARC Capital IPO Issue Details
  • Issue Price ₹249-263 per equity share
  • Face Value ₹10 Per Equity Share
  • Total Issue Size 2,95,43,727 shares(aggregating up to ₹777 crore)
  • Fresh Share 1,90,11,407 shares(aggregating up to ₹500 crore)
  • Offer For Sale 1,05,32,320 shares(aggregating up to ₹277 crore)
  • Listing at BSE, NSE
  • List Price 350.0(NSE)
  • Listing Date 2024-09-24
  • Lead Manager ICICI Securities Limited
    Axis Bank Limited
    Citigroup Global Markets India Private Limited
  • Registrar Kfin Technologies Limited
Market Lot Size

Investors can bid for a minimum of 57 shares and in multiples thereof. The following table depicts the minimum and maximum investment by Retail Investors and HNI in terms of shares and amount.

ApplicationLotsSharesAmount
Retail (min)157₹14,991
Retail(max)13741₹1,94,883
Northern ARC Capital IPO Reservation

Northern ARC Capital IPO offers total 2,90,06,785 shares. Out of which 58,01,354 (20%) allocated to QIB, 43,51,016 (15%) allocated to NII,1,01,52,384 (35%) allocated to RII, NA (NA%) allocated to employees and 87,02,031 (30%) allocated to Anchor investors.

Investor CategoryShares OfferedMaximum Allottees
Anchor Investor Shares Offered87,02,031 (30%)
QIB Shares Offered58,01,354 (20%)
NII (HNI) Shares Offered43,51,016 (15%)
bNII < ₹10L29,00,678 (10%)
sNII < ₹10L14,50,338 (5%)
Retail Shares Offered1,01,52,384 (35%)
Total Shares Offered2,90,06,785 (100%)
Northern ARC Capital IPO Documents
DRHP
RHP
ANCHOR
Northern ARC Capital IPO Details


Northern ARC Capital IPO is a book-built issue of ₹777 crores, The total issue size is ₹777 crores. The IPO of Northern ARC Capital is priced at ₹249-263 per equity share, which has a face value of ₹10 Per Equity Share each, IPO bidding starts from Sep 16, 2024 and ends on Sep 19, 2024. The allotment for Northern ARC Capital IPO will be finalized on Sep 20, 2024. Northern ARC Capital IPO will be listed on BSE, NSE, with a tentative listing date fixed as Sep 24, 2024. The company shall list its equity shares on the BSE, NSE. Kfin Technologies Limited is the registrar of the issue.

Retail investors can bid for a minimum of 57 shares, extendable to 14,991. The book-running lead manager for the IPO is/are ICICI Securities Limited, Axis Bank Limited, Citigroup Global Markets India Private Limited.

The total issue ₹777 crore, comprising a fresh issue of 1,90,11,407 shares ₹500 crore and having Offer for Sale (OFS) of 1,05,32,320 shares to mop up ₹277 crore.

The Northern ARC Capital IPO sets its price band at 249-263 for each share. A single application for Northern ARC Capital Limited IPO must contain at least 57 shares. Sentiment investors need to invest a minimum of 57 through their retail account. For investors to prevent oversubscription issues, they should submit bids at the cutoff price, which estimates about ₹14,991

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Northern ARC Capital IPO Subscription Analysis And Details
Retail
30.47x
QIB
240.79x
NII
142.13x
bNII
154.76x
sNII
116.86x
Total
110.54x
As onQIBNII
bNII   sNII		RetailTotal
Shares Offered / Reserved5,801,3544,351,016
2,900,678    1,450,338		10,152,38420,304,754
Day 1 16-09-24 05:00 PM
0.02 x4.47
3.97 x   5.46 x		3.86 x2.86 x
Day 2 17-09-24 05:00 PM
0.20 x21.72
20.41 x   24.34 x		10.84 x9.99 x
Day 3 18-09-24 05:00 PM
0.31 x50.80
51.09 x   50.22 x		18.97 x20.18 x
Day 4 19-09-24 05:00 PM
240.79 x142.13
154.76 x   116.86 x		30.47 x110.54 x
Total No of Applications
52,03,893
Subscription on the basis of Applications
Retail:27.76x BHNI:31.1x SHNI:116.1x
Northern ARC Capital Valuations
EPS Pre IPO 22.32
EPS Post IPO 19.69
P/E Pre IPO 11.78
P/E Post IPO 13.36
Debt/Equity 3.90
RoNW 13.32%
Price to Book Value 1.49
Northern ARC Capital Company Financials
In Crs.
In Cr.
31-Mar-2431-Mar-2331-Mar-22
Assets11,707.669,371.577,974.12
Revenue1,906.031,311.2916.55
Profit After Tax317.69242.21181.94
Net Worth2,314.351,955.391,739.04
Reserves & Surplus2,123.371,784.221,555.3
Total Borrowing9,047.767,034.575,982.96
About Northern ARC Capital Company

Northern Arc Capital, founded in 1989, is a non-bank financial institution that specialises in meeting the credit needs of underserved families and enterprises by providing loan financing. They are one of the most well-known diversified NBFCs in India. Microfinance, MSME financing, auto finance, consumer finance, and affordable housing finance are some of the industries in which Northern Arc works.

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Northern ARC Capital - Promoter(s)

Pre Issue Share Holding : N/A%

Post Issue Share Holding : N/A%

Northern ARC Capital IPO - Issue Objectives
1

The company proposes to utilize the Net Proceeds to meet future capital requirements toward onward lending.

Northern ARC Capital IPO - Anchor Investors

Northern Arc Capital gets Rs 229 cr from anchor investors.

SBI General Insurance Company, SBI Life Insurance Company, Reliance General Insurance Company, Kotak Mahindra Life Insurance Company, Goldman Sachs (Singapore) Pte, Societe Generale, and Quant Mutual Fund are among the anchor investors.

Northern ARC Capital IPO - Peers Comparison
Company NameEPS (Basic)EPS (Diluted)NAV (per share) (Rs)P/E (x)RoNW (%)P/BV RatioFinancial statements
Northern Arc Capital Limited34.6123.4177.06N/A13.32N/AConsolidated
Five-star Business Finance Ltd28.6428.39177.6826.7616.094.29Consolidated
SBFC Finance Limited2.352.325.8736.648.533.36Consolidated
Creditaccess Grameen Ltd90.8890.411809.9313.125.010.66Consolidated
Fusion Micro Finance Ltd50.350.11281.936.2117.741.11Consolidated
Bajaj Finance Limited236.89235.981239.0330.9318.845.89Consolidated
Cholamandalam Investment And Finance Company Ltd41.1741.06233.2636.2217.466.38Consolidated
Poonawalla Fincorp Limited21.8921.63105.4417.8120.63.67Consolidated
Mas Financial Services Ltd15.3115.31108.7118.5514.082.63Consolidated

Notes:

  1. The P/E ratio is calculated as the closing share price as of September 4, 2024, divided by the diluted EPS for the year ended March 31, 2024.
  2. Diluted EPS refers to the diluted EPS sourced from the financial statements of the respective peer group companies for the Financial Year ended March 31, 2024.
  3. NAV per Equity Share represents total equity attributable to the equity shareholders as of the end of the Financial Year ended March 31, 2024, divided by the number of Equity Shares (i.e., equity shares and instruments entirely equity in nature) outstanding at the end of the year.
  4. RoNW is computed as consolidated profit after tax for the year as a percentage of the closing Net Worth of the Financial Year ended March 31, 2024.
Strength
The NBFC has a growing and diverse pool of Originator Partners and Investment Partners from a variety of industries.
Their Nimbus technology system, which they developed themselves, enables them to expand their commercial options while also improving productivity.
Geographically, in terms of offers, products, and borrower groups, they are quite diverse.
Over the decades that they have been in business, they have refined and enhanced their risk management method.
Weakness
Any disruptions in the NBFC's funding sources will have a significant impact on the company's operations.
Northern Arc is exposed to highly high-risk borrowers, and any large-scale defaults in this sector will have a negative impact on the company's financials and operations.
n India, the microfinance industry is highly regulated, and any bad changes in this sector would have an impact on the business.
Contact Details

Northern ARC Capital

No. 1, Kanagam Village 10th Floor, 10th Floor, IITM Research Park Taramani, Chennai - 600 113

+91 44 6668 7000

investors@northernarc.com

http://www.northernarc.com/

Registrar Contact Details

Kfin Technologies Limited

04067162222, 04079611000

nacl.ipo@kfintech.com

https://kosmic.kfintech.com/ipostatus/