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Northern Arc Capital IPO is a book-built issue of Rs 777.00 crores. The issue is a combination of a fresh issue of 1.9 crore shares aggregating to Rs 500.00 crores and an offer for sale of 1.05 crore shares aggregating to Rs 277.00 crores.
The IPO price band is set at ₹249 to ₹263 per share and the minimum lot size for an application is 57 Shares.
Company Summary
Northern Arc Capital Limited was founded in 2009 and offers retail loans to underserved households and businesses in India.
Northern Arc Capital’s business model is diversified across different offerings, sectors, products, geographies, and borrower categories. As of March 31, 2024, the company has facilitated over Rs. 1.73 trillion worth of financing, reaching out to over 101.82 million people across India.
The company also has an end-to-end integrated technology product suite customized to multiple sectors. This includes an in-house technology stack consisting
(i) Nimbus, a curated debt platform that enables end-to-end processing of debt transactions
(ii) nPOS, a co-lending and co-origination technology solution based on application programming interfaces (API)
(iii) Nu Score, a customized machine learning-based analytical module designed to assist originator partners in the loan underwriting process
(iv) AltiFi, an alternative retail debt investment platform.
The company serves the retail lending market through a multi-channel approach that includes Lending, Placements, Fund Management.
Company Financials
| 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 | |||
Objectives of the IPO
The Company proposes to utilize the Net Proceeds to meet future capital requirements towards onward lending. Further, the Company expects to receive the benefits of listing the Equity Shares on the Stock Exchanges, enhancement of our Company’s brand name, and creation of a public market for our Equity Shares in India.
IPO details
| IPO Date | September 16, 2024 to September 19, 2024 |
| Listing Date | Tuesday, September 24, 2024 |
| 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) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Lot Allocation details
| 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 |
Allotment Schedule
| 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 |
IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Net Offer |
To check allotment, click here