Northern Arc Capital Ltd. IPO

Q: What is the size of Northern Arc Capital Ltd. IPO?

The size of the Northern Arc Capital Ltd. IPO is &#8377;777.00 Cr.

Q: What is the price range of Northern Arc Capital Ltd. IPO?

The price range of Northern Arc Capital Ltd. IPO is at &#8377;249 to &#8377;263 per share.

Q: What is the minimum investment and lot size required for the Northern Arc Capital Ltd. IPO?

The minimum investment required is &#8377;14,991 and minimum lot size is 57 shares.

Northern Arc Capital Ltd., established in 1989, operates in the Finance & Investments sector. The company's IPO opened on September 16, 2024 and closed on September 19, 2024, with an issue price of ₹263. The Northern Arc Capital Ltd. IPO is a book-built issue of ₹777.00 Cr, with a price band of ₹249 to ₹263 per share. The issue includes a total of 2.95 Cr shares on offer. The shares got listed on BSE, NSE on September 24, 2024. As of the latest update, the stock is trading at ₹217.35 on BSE and ₹217.05 on NSE.

Min Investment

₹ 14,991 / 57 shares

Price Range

₹249 - ₹ 263

Bidding Dates

16 Sep '24 - 19 Sep '24

Total Issue Value

777.00 Cr

Lot Size

Total Issue Size

777.00 Cr

Listing At

BSE, NSE

Subscription

81.63 times

BSE Price

217.35 (-17.36%)

NSE Price

217.05 (-17.47%)

IPO Timeline

16 Sep 2024

Bidding Starts
19 Sep 2024

Bidding Ends
20 Sep 2024

Allotment Finalization
24 Sep 2024

Listing

About Northern Arc Capital Ltd.

We are 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, our approach has been to create a differentiated and comprehensive play on the retail credit ecosystem in India spread across sectors. Since 2009, we have facilitated financing of over ?1.73 trillion that has impacted over 101.82 million lives across India, as of March 31, 2024. We have one of the lowest industry-wide credit costs amongst diversified NBFCs in India, as of March 31, 2024

Parent organisation

Founded

Northern Arc Capital Ltd.

1989

Northern Arc Capital Ltd. IPO Reservation

Investors Category	Shares Offered
Anchor Investors	86,85,856 (29.4%)
Employee Reserved	5,90,874 (2%)
Non Institutional Investors	43,42,928 (14.7%)
Qualified Institutional Buyers (QIBs)	57,90,570 (19.6%)
Retail Individual Investors (RIIs)	1,01,33,498 (34.3%)

Northern Arc Capital Ltd. Financial Information

Year End	Revenue	PAT	Reserves & Surplus
31 Mar 2024	1,844.32 Cr	280.17 Cr	2,078.32 Cr
31 Mar 2023	1,257.87 Cr	225.36 Cr	1,755.47 Cr
31 Mar 2022	874.12 Cr	163.73 Cr	1,538.36 Cr

Northern Arc Capital Ltd. Background

Major Events And Milestones

2008

• Acquisition of 100% shareholding in our Company by IFMR Trust
2009

• Commenced our operations as a platform catering to diverse credit requirements
• Entered the microfinance sector
• Undertook the country’s first microfinance securitization transaction to enable funding to a microfinance institution.
2010

• Arranged and structured India’s first pooled multi-originator securitisation transaction (MOSECR) which enabled funding to four Originator Partners operating in the microfinance sector.
• Completed our first placement of a microfinance securitisation with private individual investor
2011

• Entered the MSME finance sector
• Approved as a partner- financial institution by the Asian Development Bank to enable partial-guarantee backed lending to Indian MFIs. Through the partnership, total loans of ?8.93 billion under this program have been facilitated to ADB-approved MFIs
2013

• Entered the vehicle finance and affordable housing finance sectors
• Completed India’s first listed securitisation of microfinance loans, which enabled funding to eight Originator Partners operating in the microfinance sector.
2014

• Credit Rating of commercial paper programme upgraded to A1+ and credit rating of long term bank facilities, non-convertible debentures, and subordinated debt upgraded to A+
• Raised equity from LeapFrog Financial Inclusion India Holdings Ltd, which was a subsidiary of LeapFrog II Holdings, Ltd. and a step down subsidiary of LeapFrog Financial Inclusion Fund II, LP and LeapFrog Financial Inclusion Fund II-B, LP, which are funds focused on financial inclusion in emerging markets
• Structured and arranged our first pooled bond issuance, which enabled funding to 10 Originator Partners operating in the microfinance sector and one Originator Partner operating in education finance sector.
• Obtained SEBI registration for NAIM’s first alternative investment fund, a Category I – Social Venture Fund. Subsequently, we launched a long-term microfinance debt fund as a scheme of the fund.
2015

• Arranged our first ECB transaction for an Originator Partner in the microfinance sector
2016

• Entered the agricultural supply chain finance sector
• Obtained a trademark registration for “MOSECR”
• Raised equity from Standard Chartered Bank (entire shareholding of Standard Chartered Bank was transferred to Augusta in December, 2019) and Eight Roads
• Expanded our platform with commencement of retail business
• Expanded our platform with commencement of business with mid-market companies
2017

• Structured and arranged the country’s first pooled loan issuance product which enabled funding to eight Originator Partners operating across microfinance, vehicle finance and MSME finance sectors
• Structured and arranged the country’s first single issuer partial credit enhanced (SPiCE) bond which enabled funding to an Originator Partner operating in the vehicle finance sector
• Structured the country’s first collateralised loan obligation transaction which enabled us to securitise receivables from a select pool of term loans advanced by us to four Originator Partners operating in the microfinance and MSME finance sectors.
• Accorded ‘Impact Business Models Rating - Platinum’ rating by GIIRS Ratings for our socially and environmentally focussed products on a scale of bronze to platinum where platinum is the highest possible rating.
2018

• Name changed to Northern Arc Capital Limited
• Undertook our first persistent securitization transaction which was also India’s first vehicle loan backed securitisation transaction with replenishing structure. This transaction enabled funding to an Originator Partner operating in the vehicle finance sector.
• Accorded ‘Impact Business Models Rating - Platinum’ rating by GIIRS Ratings for our socially and environmentally focussed products for a second time
2019

• Underwent reorganization pursuant to the Scheme and became a company without any identifiable promoters
• Entered the consumer finance sector
• Facilitated the first successful exit for investors of an AIF managed by NAIM.
• Structured and arranged the country’s first issuance of dual-recourse debentures which enabled funding to an Originator Partner operating in the vehicle finance sector.
• Completed equity raise from IIFL Funds and strategic investment by SMBC, a global systemically important bank
• NAIM’s was accorded ‘Impact Business Models Rating – Platinum’ rating by GIIRS Ratings for its socially and environmentally focussed products
2020

• Commenced disbursement of microfinance loans under our retail business through Nimbus
• Completed disbursement of 100,000 retail loans in the financial year ended March 31,
• Arranged and structured India’s first securitisation transaction involving trade receivables which enabled funding to 10 vendors
• Shortlisted by NABARD to act as co-guarantor under the “Structured Finance and Partial Credit Guarantee Program to NBFC-MFIs”
• Case study on the Company included in the report on ‘Social Stock Exchanges’ published by a working group constituted by SEBI
• Company’s role in funding MFIs during the 2019 liquidity crunch mentioned in RBI bulletin
• Publication of an article by our former managing director and chief executive officer in relation to microfinance recovery analysis on the blog of World Bank
2021

• Completed disbursement of retail loans of an aggregate amount of ?10 billion through Nimbus in the financial year ended March 31,
• Obtained debt funding from USDFC and Asian Development Bank
• Entered into a project services agreement with a global development institution for collaboration on gender advisory programme
• Incorporation of Pragati with the aim of offering small ticket loans to underserved rural and semi-urban areas of the country
• Launched AltiFi, a retail investment platform that democratizes debt securities for investment opportunities to retail individuals and corporates
• Registration of NAIM with the SEBI as a portfolio manager
• Executed the first offshore pool bond issuance with an international DFI under their COVID-19 response program (Source: CRISIL Report)
2022

• Acquisition of identified assets and liabilities of S.M.I.L.E. Microfinance Limited, along with its loan portfolio of ?3,180.00 million and 144 branches
• Registration of Northern Arc Emerging Corporates Bond Trust
• Launch of supply chain financing, education loan and MSME loan against property business
• Partnership with a public sector bank in relation to access to our Company’s nPOS platform
• Appointment of Ashish Mehrotra as the Managing Director and Chief Executive Officer
2023

• Achieved ?100,000 million assets under management
• Launch of NuScore
• ICRA Rating upgrade to AA-(Stable) for non-convertible debentures, market linked debentures, long-term fund based limits, long-term loans, long term-non fund based credit exposure limits and subordinated debt
• Launched subscription to public issuances of bonds on Altifi
• Expanded our direct presence to 10 of 28 states with approximately 250 branches across India
• Collaboration with a private sector bank for nPOS platform utilization
• Raised over ?1.50 trillion in funding for our clients through our platform
2024

• Completed equity raise from IFC, RJ Corp Limited and Varun Jaipuria
• Impacted over 100 million lives
• Received certificate of registration from the IRDAI to act as a corporate agent (composite)
• Expanded our direct presence to 13 of 28 states with approximately 300 branches across India
• Obtained debt funding of USD 75 million from an entrepreneurial development bank
• Registration of ‘Northern Arc Finserv Fund’ and ‘Northern Arc Fintech NBFC Fund I’ with the SEBI

Northern Arc Capital Ltd. Object of Issues

Our Company intends to utilize the Net Proceeds to meet our future capital requirements towards onward lending in our focused sectors, namely, MSME financing, MFI, consumer finance, vehicle finance, affordable housing finance and agricultural finance, and to ensure compliance with the RBI regulations on capital adequacy, for Financial Year 2025.

Northern Arc Capital Ltd. IPO Listing Details

Listing Date

24 Sep 2024

BSE Script Code

NORTHARC

NSE Symbol

NORTHARC

ISIN

INE850M01015

Final Issue Price

₹ 263

Northern Arc Capital Ltd. Listing Day Trading Information

Pricing Details	BSE	NSE
Issue Price	₹ 263.00	₹ 263.00
Open	₹ 351.00	₹ 350.00
Low	₹ 308.15	₹ 308.20
High	₹ 351.00	₹ 350.00
Last Trade	₹ 323.60	₹ 323.40

Northern Arc Capital Ltd. Company Promoters

Company does not have an identifiable promoter

Industry Overview

The Indian retail credit market is expected to further grow at a CAGR of 17-18% between Fiscals 2024 and 2026 to reach ?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 ... Read more

Northern Arc Capital Ltd. IPO Registrar

KFin Technologies Ltd.

Selenium Tower-B, Plot 31 & 32, Gachibowli, Financial District, Nanakramguda, Serilingampally Hyderabad Telangana - 500032

67162222

Northern Arc Capital Ltd. IPO Lead Manager(s)

Citigroup Global Markets India Pvt. Ltd.

No.1202, 12th Floor, First International Financial Centre, G-Block, C54& 55, Bandra Kurla Complex, Bandra (East) Mumbai Maharashtra - 400051

61759999

FAQs

When does Northern Arc Capital Ltd. IPO opens and closes?

Northern Arc Capital Ltd. IPO opens from 16th September to 19th September 2024.

What is the size of Northern Arc Capital Ltd. IPO?

The size of the Northern Arc Capital Ltd. IPO is ₹777.00 Cr.

What is the price range of Northern Arc Capital Ltd. IPO?

The price range of Northern Arc Capital Ltd. IPO is at ₹249 to ₹263 per share.

What is the minimum investment and lot size required for the Northern Arc Capital Ltd. IPO?

The minimum investment required is ₹14,991 and minimum lot size is 57 shares.

When is Northern Arc Capital Ltd. IPO listing date?

The Northern Arc Capital Ltd. IPO will be listed on 24th September 2024.

What is the objective of Northern Arc Capital Ltd. IPO?

Latest Updates

Northern Arc Capital IPO All Set for a Strong Listing, GMP Hits 53%

Northern Arc Capital Limited, a leading non-banking financial company (NBFC) Founded in 2009, is set to raise Rs 777 crores through an initial public offering (IPO). The IPO comprises a fresh issue of Rs 500 crores and an offer for sale of Rs 277 crores. Ahead of the listing, the company's shares are commanding a GMP of Rs 141 in the grey market, which indicates a premium of 53% over the issue price of Rs 263.

The subscription period for the Northern Arc Capital IPO was open from September 16 to September 19, 2024. The allotment results were announced on September 20, 2024, and the shares are scheduled to list on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on September 24, 2024. Northern Arc Capital IPO offers a total of 2,90,06,785 shares, which are allocated to Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), Retail Individual Investors (RIIs), and Anchor Investors in a ratio of 20:15:35:30, respectively. The Northern Arc Capital IPO has been subscribed 117.19 times. QIBs have subscribed 242.73 times their allotted portion. Retail investors had a subscription rate of 32.01 times, while the NIIs have subscribed 147.58 times.

The price band for the IPO is set between Rs 249 and Rs 263 per share.

Retail investors can participate with a minimum investment of Rs 14,991 for 57 shares. For sophisticated investors (SNIs), the minimum investment is Rs 209,874 for 798 shares, while for big investors (BNIs), it's Rs 1,004,397 for 3,819 shares.

⏱ 23 September 2024

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