Northern Arc Capital IPO is a book-built issue totaling ₹777 crores, comprising a fresh issue of 1.9 crore shares worth ₹500 crores and an offer for sale of 1.05 crore shares amounting to ₹277 crores.
The IPO will be open for subscription from September 16, 2024, to September 19, 2024. Allotment is expected to be finalized on Friday, September 20, 2024, with shares listed on the BSE and NSE on the tentative date of Tuesday, September 24, 2024.
The price band for the IPO is set between ₹249 and ₹263 per share. The minimum application lot size is 57 shares, requiring a minimum retail investment of ₹14,991. For sNII, the minimum investment is ₹209,874 for 14 lots (798 shares), and for bNII, it is ₹1,004,397 for 67 lots (3,819 shares).
Below are the details of Northern Arc Capital Limited IPO Details, Timeline, Lot Size, Anchor Investor, and Promoter Holding.
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Northern Arc Capital Limited 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 Limited IPO Timeline
| 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 Limited IPO Lot Size
| 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 |
Northern Arc Capital Limited IPO Anchor Investor
| Bid Date | September 13, 2024 |
| Shares Offered | 8,702,031 |
| Anchor Portion Size (In Cr.) | 228.86 |
| Anchor lock-in period end date for 50% shares (30 Days) | October 20, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | December 19, 2024 |
Northern Arc Capital Limited IPO Reservation
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares Offered | 87,02,031 (30%) | NA |
| QIB Shares Offered | 58,01,354 (20%) | NA |
| NII (HNI) Shares Offered | 43,51,016 (15%) | |
| bNII > ₹10L | 29,00,678 (10%) | 3,634 |
| sNII < ₹10L | 14,50,338 (5%) | 1,817 |
| Retail Shares Offered | 1,01,52,384 (35%) | 1,78,112 |
| Total Shares Offered | 2,90,06,785 (100%) |
Northern Arc Capital Limited IPO Financial Information
| 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 | ||||||||||||||||||||||||||||||
Northern Arc Capital Limited IPO Review
Northern Arc Capital Ltd. (NACL) is a prominent diversified financial services provider in India, focusing on serving the credit needs of under-served households and businesses. Established in 2009, NACL has facilitated financing of over ₹1.73 trillion, impacting 101.82 million lives. It operates across multiple sectors including MSME, microfinance, consumer finance, vehicle finance, affordable housing, and agricultural finance, with expertise in these areas for up to 15 years.
The company’s IPO comprises a fresh issue of ₹500 crores and an offer for sale of ₹277 crores, totaling ₹777 crores. The IPO opens on September 16, 2024, and closes on September 19, 2024, with a tentative listing date of September 24, 2024. The price band is set at ₹249 to ₹263 per share.
NACL has a robust business model with a low credit cost and strong technology infrastructure, including Nimbus, nPOS, Nu Score, and AltiFi. It boasts one of the lowest non-performing asset ratios in the industry and has received upgraded credit ratings to AA- (Stable) and A1+ for various facilities.
Financially, the company has shown consistent growth with total income and net profit increasing from ₹916.55 crores and ₹181.94 crores in FY22 to ₹1906.03 crores and ₹317.69 crores in FY24. The issue is priced reasonably based on its financial performance and peer comparisons.
Investors should consider the IPO for its solid growth trajectory and reasonable pricing relative to earnings and sector performance.