Northern Arc Capital IPO Details, Issue Size & Price Band
Northern Arc Capital IPO: Non-banking finance company Northern Arc Capital’s Rs. 777 crore initial public offering (IPO) will open for bidding on September 16.
The company said in a statement on Wednesday that it has fixed a price band of Rs. 249-263 per share for the issue. The IPO will close on September 19.
Anchor investors will be able to bid on September 13 before the issue opens. Under the IPO, there will be an offer for sale (OFS) of 1,05,32,320 shares worth up to Rs. 277 crore from investors along with fresh equity shares worth Rs. 500 crore. This will make the size of the company’s IPO Rs. 777 crore.
Northern Arc Capital IPO Details
| 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 |
| Share holding pre issue | 142,314,010 |
| Share holding post issue | 161,325,417 |
Northern Arc Capital IPO Timeline (Tentative Schedule)
Northern Arc Capital IPO opens on September 16, 2024, and closes on September 19, 2024.
| 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 IPO Lot Size
Investors can bid for a minimum of 57 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| 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 |
Where will the funds be used?
Northern Arc Capital will use the funds raised from this public issue for the company’s capital needs. Northern Arc is a non-banking finance company (NBFC) and has been active in the financial inclusion sector for more than a decade.
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Company Financials
Northern Arc Capital Limited Financial Information (Restated Consolidated)
Northern Arc Capital Limited’s revenue increased by 45% and profit after tax (PAT) rose by 31% between the financial year ending with March 31, 2024 and March 31, 2023.
| 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 | ||||||||||||||||||||||||||||||
About Northern Arc Capital Limited
Northern Arc Capital Ltd IPO is a mainboard IPO, a book-built issue of Rs. 777 crore (29,543,727 crore shares) by Northern Arc Capital Limited, founded in 2009. The company provides retail loans to underprivileged Indian households and companies.
Northern Arc Capital’s business strategy is diversified across a range of services, industries, commodities, markets, and borrower types. As of March 31, 2024, the company had reached over 101.82 million people in India and enabled financing of over Rs 1.73 trillion.
The organization specializes in lending to small and medium-sized businesses (MSMEs), microfinance (MFIs), consumers, automobiles, affordable housing, and agriculture. Its lending experience extends to some of the targeted sectors in India. The business has 14 years of experience funding MSMEs, 15 years of experience funding MFIs and 9 years of experience funding consumers.
