Northern Arc IPO: Issue Details, Open/Close Date | Research 360 by Motilal Oswal
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Northern ARC

CMP

292.15

+6.80 (2.38%)

  • DRHP
₹263

Offer Price

₹ 777.00 Cr

Issue Size

₹ 14,991

Min Investment

32.53x

Times Subscribed

57

Lot size

Time Line

  • 16
    Sep 2024
    Open
  • 19
    Sep 2024
    Close
  • 20
    Sep 2024
    Finalisation of Basis of Allotment
  • 23
    Sep 2024
    Initiation of Refunds
  • 23
    Sep 2024
    Transfer of Shares to Demat Account
  • 24
    Sep 2024
    Listing Date

Shares Offered

Number of Times Subscribed

Objects of the Offer

  • Enhance its ecosystem by growing and deepening relationships with its partners, while leveraging and scaling up its technology products.

  • Expand to adjacent sectors such as climate lending and gold loans, and enhance our ESG risk management systems.

  • Expand its Fund Management channel.

  • Continue to scale its Direct to Customer Lending channel to enhance risk adjusted returns.

  • Focus on credit quality to manage credit cost efficiently.

Products & Services

  • The Company is a diversified financial services platform set up primarily with the mission of catering to the diverse retail credit requirements.

Strengths

  • Large addressable and underpenetrated market with strong sectoral expertise.

  • Large ecosystem of partners and data and technology platform creating strong network effects.

  • Proprietary technology product suite transforming the debt market ecosystem.

  • Robust risk management based on domain expertise, proprietary risk models and data repository driving asset quality.

  • Diversified sources of funding for its own deployment and proactive liquidity management.

Risks

  • The company operates a diversified business model that exposes it to various risks and an inability to manage such risks may have an adverse effect on its business, results of operations, cash flows and financial condition.

  • If the company borrowers default in their repayment obligations it may lead to increased levels of non-performing assets ("NPA"), related provisions and write-offs, its business, results of operations, cash flows and financial condition may be adversely affected.

  • The company does not have any identifiable promoter in terms of the SEBI ICDR Regulations and the Companies Act, 2013.

  • Its Statutory Auditors have included modifications in their report on the company audited consolidated financial statements for Fiscals 2024 and 2023 under eport on Other Legal and Regulatory Requirements`, and certain other remarks/ comments in the annexure to report prescribed under the Companies (Auditor`s Report) Order, 2020 for Fiscals 2024 and 2023.

  • A significant portion of its investments are in credit facilities and debt instruments that are unsecured, and/or subordinated to other creditors. An inability to recover such investments may result in increased levels of NPAs, which could adversely affect its business, prospects, results of operations, cash flows and financial condition.

Financials

All values in Cr

Mar-2022 Mar-2023 Mar-2024 3-Yr trend
Revenue 910.60 (33.50%) 1,306.47 (43.50%) 1,891.01 (44.70%)
Gross Profit 257.97 (141.70%) 333.27 (29.20%) 437.18 (31.20%)
Net Income 172.50 (155.50%) 230.01 (33.30%) 308.33 (34.10%)
Assets 7,815.07 (39.40%) 9,102.30 (16.50%) 11,368.17 (24.90%)
Liabilities 6,076.00 (51.10%) 7,146.87 (17.60%) 9,054.62 (26.70%)

Peers

Company Name Revenue (Cr) Net Profit (Cr) Assets (Cr) Liabilities (Cr) ROE EPS BVPS Current Ratio Debt to Assets
Northern ARC Capital Ltd 1,891.01 308.33 11,368.17 9,054.62 13.32 34.50 249.58 1.93 0.80
Five-Star Business Finance Ltd 2,182.85 835.92 11,688.78 11,688.78 16.08 28.64 177.68 7.15 1.22
SBFC Finance Ltd 1,018.64 237.10 7,062.78 7,062.78 8.53 2.30 25.92 3.35 1.44
CreditAccess Grameen Ltd 5,166.67 1,445.93 28,846.16 28,846.16 22.00 90.41 412.22 5.01 3.32
Fusion Micro Finance Ltd 2,316.73 505.29 11,774.32 11,774.32 17.74 50.30 283.06 4.29 3.02
Bajaj Finance Ltd 54,969.49 14,451.17 375,741.62 375,741.62 18.84 235.98 1,241.02 3.84 3.82
Cholamandalam Investment & Finance Company Ltd 19,139.62 3,420.06 156,686.41 156,686.41 17.45 41.17 233.15 2.18 6.86
Poonawalla Fincorp Ltd 3,109.01 1,682.75 24,086.90 24,086.90 20.60 21.89 105.99 6.98 1.85
MAS Financial Services Ltd 1,279.16 251.05 9,547.34 9,547.34 14.08 15.31 110.90 2.62 4.17

Book Running Managers

  • Axis Capital Ltd
  • ICICI Securities Ltd
  • Citigroup Capital Markets India Pvt Ltd

Registrar & Transfer Agent

KFin Techologies Ltd

Karvy Selenium Tow-B,
31&32 Financial Dist,
Nanakramguda - Hyderabad-500032
Phone : 91-40-67162222 Fax: 91-40-23001153/23420814

Company Contact Information

No. 1 Kanagam Village 10th Flr,
IITM Research Park Taramani,
Chennai - 600113
Phone : +91-44-66687000 Email : investors@northernarc.com www.northernarc.com / www.capital.ifmr.co.in

Offer Related Information

Initial public offering of 29,597,646 equity shares of face value of Rs. 10 each ("Equity Shares") of Northern ARC Capital Limited (The "Company" or the "Company" or the "Issuer") for cash at a price of Rs. 263 per equity share (including a premium of Rs. 253 per equity share) (the "Offer Price") aggregating up to Rs. 777.00 crores (the "Offer") comprising a fresh issue of 19,065,326 equity shares of face value Rs. 10 each aggregating to Rs. 500.00 crores by the company (the "Fresh Issue")... More

News

  • No Data Found.

Northern ARC FAQ's

The shares of Northern ARC were first listed on the stock exchanges on June 26, 2024.

The total issue size of the Northern ARC IPO was 1,10,00,000 shares, amounting to Rs. 132 crore. they

The minimum lot size for Northern ARC public issue was 125 shares.

The price band of the IPO of Northern ARC was Rs. 114 to Rs. 120 per equity share.

Northern ARC IPO is a public issue through which the company raised approximately Rs. 132 crore by issuing around 1.1 crore equity shares to the public. After a successful IPO, the company’s shares are currently listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), where they are freely traded without restrictions.

Bigshare Services Private Limited is the registrar and share transfer agent of Northern ARC IPO.

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