Northern Arc Capital IPO: Check IPO Price & Details

IPO Dates

Important dates with respect to IPO allotment and listing

IPO Open Date

To be announced

About 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.

Since its inception, the organisation has raised more than Rs.9,500 billion for its clients. There are three main services provided by the company:

Financing: Financing to underserved people and enterprises, as well as lending to mid-sized firms.
Syndication and structuring.
Fund management is handled by Northern Arc Investment Managers Pvt Ltd, a subsidiary of Northern Arc.

They have had a total effect of 54.21 million people since its beginning.

Northern Arc Capital IPO Objectives

- Utilize the Net Proceeds towards augmenting Company’s capital base to meet its future capital requirements.
- The Company expects to receive the benefits of listing the Equity Shares on the Stock Exchanges.
- Enhancement of the Company’s brand name and creation of a public market for their Equity Shares in India.
- The main objects set out in the Memorandum of Association enable our Company to undertake its existing activities and the activities for which funds are being raised through the Fresh Issue.

Why should you invest in Northern Arc Capital IPO?

The Northern Arc Capital’s AUM from three primary offerings increased at a CAGR of 56.12% over the last 10 years.
They have raised over Rs. 950.00 billion in funds for their clients since the platform's inception, completed over 900 structured finance transactions and secured over Rs. 28.00 billion in investor commitments across nine high-performing funds, and gathered over 22 million data points on customer repayment behaviour.

On July 15, 2021, Northern Arc Capital Ltd submitted its DRHP with SEBI. A fresh issue of Rs.300 crores and an offer for sale of up to 36,520,585 equity share are included in the offering. The business is also considering a pre-IPO placement of Rs.150 crore.

IIFL Securities, Axis Capital, SBI Capital Markets, and Credit Suisse Securities are the book running lead managers for the offer.

IPO Financials

Particulars (in Rs. Crores)	FY 2021	FY 2020	FY 2019
Revenue	681.17	632.82	601.55
PAT	76.6	102.93	115.41
EPS (In Rs)	5.35	7.92	10.91
Total Assets	5,697.16	4,597.5	4,277.99
Total Borrowings	3,932	2,921.5	2,925
Equity Share Capital	87.92	87.47	78.34

Know before investing

Strengths

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.

Risks

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.
In India, the microfinance industry is highly regulated, and any bad changes in this sector would have an impact on the business.
It's likely that the fund management industry will confront new challenges.