About Northern Arc Capital:
They are a diversified financial services platform established with the mission to address the diverse retail credit needs of under-served households and businesses in India. Over the past 15 years, they have built a differentiated and comprehensive presence in the retail credit ecosystem across sectors. Since 2009, they have facilitated financing of over ₹1.73 trillion, impacting more than 101.82 million lives as of March 31, 2024. They also maintain one of the lowest credit costs among diversified NBFCs in India as of the same date.
About the Industry in which Northern Arc Capital operates:
The Indian retail credit market is projected to grow at a CAGR of 17-18% between FY 2024 and FY 2026, reaching ₹100.9 trillion by FY 2026. NBFCs’ loan outstanding for MSME, MFI, consumer finance, vehicle, affordable housing, and agriculture loans are expected to grow at a CAGR of 13-15%, 23-25%, 17-20%, 12-14%, 14-16%, and 9-10%, respectively, during this period. As of March 31, 2024, rural areas, which contributed 47% of GDP, received only 9% of total banking credit, highlighting a significant market opportunity for banks and NBFCs to expand lending in these regions.
| Important Information and Timelines of the IPO of Northern Arc Capital: | |
|---|---|
| Open Date | 16 September 2024 |
| Close Date | 19 September 2024 |
| Total Issue Size – Number of Shares | 29543727 |
| Minimum Bid Price | 249 |
| Maximum Bid Price | 263 |
| Lot Size | 57 |
| Basis of Allotment | 20 September 2024 |
| Initiation of Refunds and Credit of Shares to Demat | 23 September 2024 |
| Listing Date | 24 September 2024 |
| Listing Exchange(s) | NSE and BSE |
Minimum and Maximum Lot Sizes for the IPO of Northern Arc Capital:
| Category | Lots | Shares | Amount (in ₹) |
|---|---|---|---|
| Retail – Minimum | 1 | 57 | 14991 |
| Retail – Maximum | 13 | 741 | 194883 |
| sHNI – Minimum | 14 | 798 | 209874 |
| sHNI – Maximum | 66 | 3762 | 989406 |
| bHNI – Minimum | 67 | 3819 | 1004397 |
Objective of the IPO of Northern Arc Capital:
The company intends to allocate the net proceeds to fulfill future capital requirements for continued lending.
Financials of Northern Arc Capital:
| Particulars | 2024 | 2023 | 2022 |
|---|---|---|---|
| Equity share capital | 893.85 | 890.31 | 889.08 |
| Net worth | 23,143.49 | 19,553.90 | 17,390.42 |
| Total revenue from operations | 18,900.84 | 13,049.71 | 9,095.39 |
| Restated profit for the year | 3,176.93 | 2,422.14 | 1,819.38 |
| Restated earnings share – Basic | 34.61 | 25.85 | 19.52 |
| Restated earnings per share – Diluted | 23.40 | 17.38 | 13.09 |
| Net asset value per Equity Share | 177.06 | 150.01 | 133.54 |
| Total Borrowings | 90,477.56 | 70,345.66 | 59,829.58 |
For more details on the IPO, refer to the DRHP here.
Did you know that you can now Pre-Apply for an IPO on Dhan? You can place your IPO Bid on Dhan and the order will be pushed to the Exchange as soon as the Bidding starts for Northern Arc Capital. You will receive a UPI mandate after 10:00 AM on 16 September 2024.
###1. How to apply for the IPO of Northern Arc Capital on Dhan?
You can apply for the IPO of Northern Arc Capital from either Dhan Mobile App or Web
On Dhan Mobile App you can find the IPO under the Money Section > IPO Tab
On Dhan Web you can find the IPO under Markets Tab > IPOs
###2. In case of successful allotment, when the IPO shares of Northern Arc Capital be visible on Dhan?
The CDSL will intimate you regarding the credit of shares into your Demat account by 23 September 2024. However, you will be able to see the shares of Northern Arc Capital on Dhan before the market starts on the listing date which is 24 September 2024.