Northern Arc Capital Limited IPO Opens On September 16. Check IPO Details Issue Date Price

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Northern Arc Capital Limited IPO Opens On September 16. Check IPO Details Issue Date Price

September 17, 2024
Northern Arc Capital Limited IPO Opens On September 16. Check IPO Details Issue Date Price

Northern Arc Capital Limited is coming out with an initial public offer to raise Rs. 777 crores from the market.

Below are the details of the Northern Arc Capital Limited IPO:

  • Issue opens – September 16 (Monday)
  • Issue closes – September 19 (Thursday)
  • Issue size – Rs. 777 crores
  • Price band – Rs. 249 to 263 per equity share
  • Bid lot – 57 shares and in multiples thereof.

And here are some details of the company and further details on the IPO.

Company Details:

  • Northern Arc Capital Limited is 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, their approach has been to create a differentiated and comprehensive play on the retail credit ecosystem in India spread across sectors. Since 2009, when they entered the financial inclusion space, they have facilitated financing of over Rs. 1.73 trillion that has impacted over 101.82 million lives across India, as of March 31, 2024. According to the CRISIL Report, they are one of the leading players amongst India’s diversified NBFCs in terms of Assets under Management (“AUM”) as of March 31, 2024, with a business model diversified across offerings, sectors, products, geographies and borrower categories. Further, they have one of the lowest industry-wide credit costs amongst diversified NBFCs in India, as of March 31, 2024 (Source: CRISIL Report).
  • They have developed domain expertise in enabling credit across their focused sectors in India, namely, micro, small and medium enterprises (“MSMEs”) financing, microfinance (“MFI”), consumer finance, vehicle finance, affordable housing finance and agricultural finance. They have been operating in the MSME, MFI and consumer finance sectors for over 14 years, 15 years and nine years, respectively.
  • They cater to retail credit market through a multi-channel approach that includes: (i) extending financing from their balance sheet (“Lending”), to Originator Partners in the form of loans or investment in their debt to enable on-lending to the retail customer (“Intermediate Retail Lending”) and directly to under-served households and businesses (“Direct to Customer Lending”) either in collaboration with their Retail Lending Partners or through their branch network to offer rural finance and MSME lending, with AUM of Rs. 117,100.19 million across 671 districts, 28 states and seven union territories in India, as of March 31, 2024; (ii) enabling credit for their Originator Partners through various financing products (“Placements”), with aggregate Placements volume of Rs. 1,019,038.92 million, as of March 31, 2024; and (iii) managing debt funds and providing portfolio management services (“Fund Management”), with aggregate fund deployed of Rs. 120,785.58 million across 10 alternate investment funds (“AIFs”) and three portfolio management service (“PMS”) funds, as of March 31, 2024.
  • They have built an efficient and scalable business model, supported by their proprietary end-to-end integrated technology product suite customised to multiple sectors. Their in-house technology stack consists of: (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 customised machine learning based analytical module designed to assist our Originator Partners in the loan underwriting process; and (iv) AltiFi, an alternative retail debt investment platform.

Issue Size : Rs. 777 Cr

Employee Reservation: Rs. 14.12 crores

Employee Discount: Rs. 24 / per share

Issue break-up :

QIB – 50 % of the offer – Rs. 381.44 Cr.
NIB – 15 % of the offer – Rs. 114.43 Cr.
RET – 35 % of the offer – Rs. 267.01 Cr.

Listing : BSE & NSE

Registrar : KFin Technologies Limited

UPI : All Retail & NII Bidders (bids up to Rs. 5,00,000) Applications through brokers are compulsorily in UPI Mode

Note:

Application made using third party UPI or ASBA Bank A/c are liable to be rejected.

The UPI Mandate acceptance time for Retail and NII Bidders (bids up to Rs. 5,00,000) shall expire at 5:00 PM on the closing day of the IPO i.e., Thursday, September 19th, 2024.

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