Northern ARC Capital Ltd IPO
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Northern ARC Capital Ltd IPO Details
Details
| Total Shares Offered | Offer to Public | Retail Max (Shares) | Pre Issue Promoters Holding | Exchange | Issue size |
|---|---|---|---|---|---|
| ₹ 295.44 L | ₹ 105.32 L | ₹ 101.33 L | TBA | BSE | ₹ 777 Cr |
| IPO Open Date | Close Date | Lot Size | Min Investment | Issue Type | Listing Date |
| 16 Sep, 24 | 19 Sep, 24 | 57 | ₹ 14,193 | Book Building | 24 Sep, 24 |
Northern ARC Capital Ltd IPO Dates
Details
| Sector | Type |
|---|---|
| Sector | Finance & Investments |
| Sub Sector | NA |
| Issue Type | Book Building |
Subscription Status
*Values are in Lakhs
| Investor Type | Subscription Times | Shares Offered* | Shares Bid* |
|---|---|---|---|
| QIB | 97.27x | 14476426 | 1408133928 |
| NII | 147.95x | 4342928 | 642529308 |
| Retail | 32.29x | 10133499 | 327247602 |
| Employee | 7.33x | 590874 | 4332969 |
| Total | 80.63x | 29543727 | 2382243807 |
Subscription Status
Investor Type
QIB
NII
Retail
Employee
Total
*Values are in Lakhs
Northern ARC Capital Ltd Financial Status
Income Statement
Balance Sheet
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue from operations | 313.31 | 236.21 | 83.07 |
| EBITDA | 323.57 | 245.33 | 89.81 |
| PAT | 225.36 | 163.73 | 56.05 |
| Total Assets | 582.12 | 963.43 | 536.51 |
| Share Capital | 171.68 | 171.55 | 170.57 |
| Total Borrowings | 7,125.97 | 5,867.86 | 3,822.78 |
| Operating Activities (Net Cash) | 235.62 | 172.85 | 62.79 |
| Investing Activities (Net Cash) | 1,695.66 | 1,639.06 | 1,252.58 |
| Financing Activities (Net Cash) | 7,125.97 | 5,867.86 | 3,822.78 |
| Net Cashflow | 387.16 | 791.56 | 456.28 |
Particulars (in Rs. Crores)
Revenue from operations
EBITDA
PAT
Total Assets
Share Capital
Total Borrowings
Operating Activities (Net Cash)
Investing Activities (Net Cash)
Financing Activities (Net Cash)
Net Cashflow
About Northern ARC Capital Ltd
Northern Arc Capital Limited was incorporated on March 9, 1989 at Madras, India as `Highland Leasing & Finance Private Limited', a private limited company under the Companies Act, 1956 and was granted a certificate of incorporation by the Registrar of Companies, Tamil Nadu at Chennai (RoC). The name of the Company was changed to `IFMR Capital Finance Private Limited' and a fresh certificate of incorporation dated June 19, 2009 was issued by the RoC. The Company was then converted into a public limited company under the Companies Act, 2013, and consequently, the name of the Company was changed to `IFMR Capital Finance Limited' and a fresh certificate of incorporation dated December 12, 2017 was issued by the RoC. Subsequently, the name of the Company was changed to `Northern Arc Capital Limited' and a fresh certificate of incorporation dated February 20, 2018 was issued by the RoC. The Company is registered with the Reserve Bank of India (the RBI) as a non-banking financial company (NBFC) not accepting public deposits (certificate of registration No. B-07.00430).
The Indian retail credit market is expected to further grow at a CAGR of 17-18% between Fiscals 2024 and 2026 to reach Rs. 100.9 trillion by Fiscal 2026. NBFCs loan outstanding for MSME, MFI, consumer finance, vehicle, affordable housing and agriculture loans are expected to grow at a CAGR of 13-15%, 23-25%, 17-20%, 12-14%, 14-16% and 9-10%, respectively, between Fiscals 2024-2026. Rural areas, which accounted for 47% of GDP, received only 9% of the overall banking credit, as of March 31, 2024, which also shows the vast market opportunity for banks and NBFCs to lend in these areas.
Northern ARC Capital Limited 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 15 years, its approach has been to create a differentiated and comprehensive play on the retail credit ecosystem in India spread across sectors. Since 2009, the company has facilitated financing of over Rs. 1.73 trillion that has impacted over 101.82 million lives across India, as of March 31, 2024. The Company has one of the lowest industry-wide credit costs amongst diversified NBFCs in India, as of March 31, 2024.
Peer Comparison:
- Five-Star Business Finance Ltd
- SBFC Finance Ltd
- CreditAccess Grameen Ltd
- Fusion Micro Finance Ltd
- Bajaj Finance Ltd
- Cholamandalam Investment & Finance Company Ltd
- Poonawalla Fincorp Ltd
- MAS Financial Services Ltd
Northern ARC Capital Ltd IPO Key Points
Strengths
- Large addressable and underpenetrated market with strong sectoral expertise.
- Large ecosystem of partners and data and technology platform creating strong network effects.
- Proprietary technology product suite transforming the debt market ecosystem.
- Robust risk management based on domain expertise, proprietary risk models and data repository driving asset quality.
- Diversified sources of funding for its own deployment and proactive liquidity management.
Risk
- The company operates a diversified business model that exposes it to various risks and an inability to manage such risks may have an adverse effect on its business, results of operations, cash flows and financial condition.
- If the company borrowers default in their repayment obligations it may lead to increased levels of non-performing assets (NPA), related provisions and write-offs, its business, results of operations, cash flows and financial condition may be adversely affected.
- The company does not have any identifiable promoter in terms of the SEBI ICDR Regulations and the Companies Act, 2013.
Strategy
- Enhance its ecosystem by growing and deepening relationships with its partners, while leveraging and scaling up its technology products.
- Expand to adjacent sectors such as climate lending and gold loans, and enhance our ESG risk management systems.
- Expand its Fund Management channel.
- Continue to scale its Direct to Customer Lending channel to enhance risk adjusted returns.
- Focus on credit quality to manage credit cost efficiently.
- Large addressable and underpenetrated market with strong sectoral expertise.
- Large ecosystem of partners and data and technology platform creating strong network effects.
- Proprietary technology product suite transforming the debt market ecosystem.
- Robust risk management based on domain expertise, proprietary risk models and data repository driving asset quality.
- Diversified sources of funding for its own deployment and proactive liquidity management.
How To Apply for Northern ARC Capital Ltd IPO Online?
Step 1:
Log in to the BlinkX stock market app and click ‘IPO’ in the Xplore section.
Step 2:
From the list of open IPOs, select the IPO you want to invest.
Step 3:
Go through the IPO details like lot size, price band, about the company, etc.
Step 4:
Click ‘Apply IPO’ to apply and enter the number of lots and bidding price along with your UPI ID.
Step 5:
Confirm your bid and accept the payment mandate sent to your UPI App for completing the IPO application.