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Northern Arc Capital IPO
Northern ARC Capital Ltd
₹14,193 /57 sharesMinimum Investment
Northern Arc Capital IPO Listing Details
| Listed On | Issue Price | Listing Price | Listing Gains |
|---|---|---|---|
| BSE | ₹263.00 | ₹350.00 | ₹87.00 (33.08%) |
Northern Arc Capital IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 16 Sep ‘24 - 19 Sep ‘24 | ₹14,193 | 57 | ₹249 - ₹263 |
| Issue Size | IPO Doc |
|---|---|
| 777.00Cr | RHP PDF |
Subscription rate
As of 19 Sep'24, 05:00 PM
| Qualified Institutional Buyers | 173.18x |
| Non-Institutional Investor | 134.79x |
| Retail Individual Investor | 29.11x |
| Employees | 6.42x |
| Total | 89.91x |
About Northern Arc Capital
Founded in
1989
Managing director
Mr. Ashish Mehrotra
Parent organisation
Northern ARC Capital Ltd
Strengths & Financials of Northern Arc Capital
Strengths
Risks
Northern Arc Capital's in-house technology consists of Nimbus (a debt platform that facilitates complete debt transaction processes), nPOS (a co-lending and co-origination tool utilising application programming interfaces (APIs), Nu Score (a machine learning-driven analytical tool aiding originator partners in loan underwriting), and AltiFi (a platform for alternative retail debt investment).
The company claims to have established partnerships with various investor partners, including banks, asset management companies (AMCs), insurance companies, development financial institutions (DFIs), fund-of-funds, alternative investment funds (AIFs), foreign portfolio investors (FPIs), global investment vehicles, family offices, private wealth managers, foundations, and high-net-worth individuals (HNIs).
The company offers microfinance loans to underserved individuals through Pragati, its dedicated rural finance partner subsidiary.
The company claims to have developed a specialised risk management system tailored to each sector and channel it serves, which helps manage risks and build a diversified portfolio.
The company has seen a consistent increase in revenue from operations and profit after tax (PAT) over the past few years. Revenue from operations increased from Rs 909.54 crore in FY22 to Rs 1,304.97 crore in FY23 to Rs 1,890.08 crore in FY24. Meanwhile, PAT increased from Rs 181.94 crore in FY22 to Rs 242.21 crore in FY23 to Rs 317.69 crore in FY24.
The company may face defaults by borrowers, which can increase its non-performing assets (NPAs). And then this would require provisions and write-offs, which can negatively impact Northern Arc Capital's operational and financial results.
A large part of the company's investments are in unsecured, subordinated credit facilities and debt instruments. Any failure to recover these investments could increase its NPAs and adversely affect the company's business prospects and finances.
Northern Arc Capital needs a steady flow of funds to operate. The success of the business depends on how well it can secure debt (loans) and investments (equity) from different sources at reasonable cost and without delay. Any disruption in procuring these funds can be detrimental to the company’s operations and financial performance.
The success of the company is dependent on its key management personnel, senior management, and some employees. Any failure to retain some specific talents can adversely affect the company’s operations.
The company relies on a few key lenders for a substantial portion of its borrowings. Its top five lenders contributed Rs 3,087.55 crore (34.13%), Rs 2,447.61 crore (34.79%), and Rs 1,953.09 crore (32.64%) in FY24, FY23, and FY22, respectively, to total borrowings, while the top 10 lenders contributed Rs 4,718.45 crore (52.15%), Rs 4,134.15 crore (58.77%), and Rs 3,255.7 crore (54.42%) in FY24, FY23, and FY24, respectively. Any reduction in funding from these sources or loss of these lenders could negatively impact the company's financial standing and operations.
The company’s target sectors for revenue generation are MSMEs, MFIs, consumer finance, vehicle finance, affordable housing finance, and agriculture finance segments. Any adverse developments in these sectors can negatively impact the company’s finances.
The company and its subsidiaries are involved in outstanding legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
As of March 31, 2024, Northern Arc Capital's outstanding borrowing was Rs 9,047.76 crore. Any failure to repay or service these loans can harm the company’s financial position.
Northern Arc Capital Financials
*All values are in Rs. Cr
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Application Details of Northern Arc Capital IPO
| Apply as | Price band | Apply upto |
|---|---|---|
| Regular | ₹249 - 263 | ₹2 Lakh |
| Employee | ₹225 - 239 | ₹2 Lakh |
| High Networth Individual | ₹249 - 263 | ₹2 - 5 Lakh |
For Northern Arc Capital IPO, eligible investors can apply as Regular & Employee.