No. 1, Kanagam Village 10th Floor,
10th Floor, IITM Research Park Taramani,
Chennai - 600 113
Phone: +91 44 6668 7000
Email: investors@northernarc.com
Website: http://www.northernarc.com/
Last updated on 19-Sep-2024 19:59:22
| Category | Offered | Applied | Times |
|---|---|---|---|
| QIBs | 5801355 | 1408133928 | 242.73 |
| HNIs | 4351016 | 643135617 | 147.81 |
| HNIs 10+ | 2900677 | 465493635 | 160.48 |
| HNIs 2+ | 1450339 | 177641982 | 122.48 |
| Retail | 10152371 | 329814711 | 32.49 |
| Employees | 590874 | 4396866 | 7.44 |
| Total | 20895616 | 2385481122 | 114.16 |
Application Wise Breakup (Approx) | |||
|---|---|---|---|
| Category | Reserved | Applied | Times |
| HNIs (10L+) | 3635 | 116802 | 32.13 |
| HNIs (2-10L) | 1817 | 213263 | 117.37 |
| Retail | 178112 | 4944778 | 27.76 |
| Employee | - | 54315 | - |
| Total Applications: 5329158 | |||
| © IPO Premium | |||
| Subscription Demand (in ₹ crore) | |||
|---|---|---|---|
| Category | Offered | Demand | Times |
| QIBs | 152.58 | 37033.92 | 242.73 |
| FIIs | - | 9784.58 | - |
| DIIs | - | 16268.78 | - |
| Mutual funds | - | 1922.42 | - |
| Others | - | 8471.89 | - |
| HNIs | 114.43 | 16914.47 | 147.81 |
| HNIs 10+ | 76.29 | 12242.48 | 160.48 |
| HNIs 2+ | 38.14 | 4671.98 | 122.48 |
| Retail | 267.01 | 8674.13 | 32.49 |
| Employees | 15.54 | 115.64 | 7.44 |
| Total | 549.55 | 62738.15 | 114.16 |
| QIB Interest Cost per share (7 Days) | |||||
|---|---|---|---|---|---|
| @7% ₹85.7 | @8% ₹97.94 | @9% ₹110.19 | @10% ₹122.43 | @11% ₹134.67 | @12% ₹146.91 |
| Category | Lot(s) | Qty | Amount | Reserved |
|---|---|---|---|---|
| Retail | 1 | 57 | 14991 | 178112 |
| sHNI | 14 | 798 | 209874 | 1817 |
| bHNI | 67 | 3819 | 1004397 | 3635 |
Northern Arc Capital IPO Details
| 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 |
| Share holding pre issue | 142,314,010 |
| Share holding post issue | 161,325,417 |
Northern Arc Capital 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 |
Key Performance Indicator
| KPI | Mar-24 | Mar-23 | Mar-22 |
|---|---|---|---|
| D/E | 3.9 | 3.4 | 3.2 |
| RONW | 13.32% | 11.76% | 9.92 |
| EPS (Basic) | 23.4 | 17.38 | 13.09 |
| P/E Pre IPO | 11.78 | ||
| P/E Post IPO | 13.36 |
Company Financials
Northern Arc Capital Limited Financial Information (Restated Consolidated)
Northern Arc Capital Limited's revenue increased by 45% and profit after tax (PAT) rose by 31% between the financial year ending with March 31, 2024 and March 31, 2023.
| Period | Mar 2024 | Mar 2023 | Mar 2022 | |||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Assets | 11,707.66 | 9,371.57 | 7,974.12 | |||||||||||||||||||||||||||
| Revenue | 1,906.03 | 1,311.2 | 916.55 | |||||||||||||||||||||||||||
| Profit | 317.69 | 242.21 | 181.94 | |||||||||||||||||||||||||||
| Net Worth | 2,314.35 | 1,955.39 | 1,739.04 | |||||||||||||||||||||||||||
| Reserves | 2,123.37 | 1,784.22 | 1,555.3 | |||||||||||||||||||||||||||
| Borrowing | 9,047.76 | 7,034.57 | 5,982.96 | |||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||
About Company
Northern Arc Capital Limited, founded in 2009, provides retail loans to underserved households and businesses across India through a diversified business model spanning multiple sectors and borrower categories. As of March 31, 2024, the company has facilitated over Rs. 1.73 trillion in financing, reaching more than 101.82 million people. It specializes in sectors like MSME finance, microfinance, consumer finance, vehicle finance, affordable housing finance, and agriculture finance. Northern Arc's multi-channel approach includes direct lending, intermediate retail lending, and placements, with a total AUM of Rs. 1,136,139.11 million. Additionally, the company offers fund management services, managing Rs. 120,785.58 million in assets across AIFs and PMS funds, and employs a robust technology stack, including tools like Nimbus and AltiFi. It had 2,695 permanent employees as of March 31, 2024.
Strength
Large Market Opportunity: Positioned to tap into India's growing retail credit market, especially in rural and semi-urban areas.
Strong Partner Network: Extensive ecosystem of 328 Originator Partners, 50 Retail Lending Partners, and 1,158 Investor Partners.
Advanced Technology: Proprietary tech solutions drive scalability and efficiency across its lending and financial services.
Weakness
Diversified Model Risk: Exposure to multiple sectors increases vulnerability to various risks, which, if not managed effectively, could negatively impact the business.
High NPAs: Defaults by borrowers may raise non-performing assets, leading to higher provisions and write-offs.
Unsecured Investments: A large portion of investments in unsecured and subordinated debt instruments heightens credit risk.