₹ 14991 / 57 shares
IPO Details
RHP/DRHPIssue Date
16 Sep - 19 Sep'24
Investment/lot
₹ 14991
Price Range
249 - 263
Lot Size
57
IPO Size
₹ 778.42 Cr
IPO Listing Details
Listing On
24 Sep'24
Issue Price
263
Listed Price
₹ 350
Retail Gain/Listing Gain
▲33.08%
IPO Timeline
Northern ARC Capital Company Background
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.
The company enables credit across focused sectors in India, namely, micro, small and medium enterprises (MSMEs) financing, microfinance (MFI), consumer finance, vehicle finance, affordable housing finance and agricultural finance.
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Northern ARC Capital Competitive Strengths
Large ecosystem of partners, data and a robust technology platform creating strong network effects
The company has, over the last 15 years, has served the Indian retail credit market and facilitating financing of over ₹1.73 trillion. Since 2009, this has affected over 101.82 million lives, created an ecosystem of 328 Originator Partners, 50 retail lending partners and 1,158 investor partners, as of March 31, 2024. This large and growing community coupled with their track record in diversified product offerings and the proprietary technology stack, has helped them access large pools of liquidity, serve wider classes of investors and meet their varied requirements.
Proprietary technology product suite transforming the debt market ecosystem
They are a technology driven financial services platform supported by in-house technology solutions and architecture. Their digital initiatives have earned them the ‘Best Digital NBFC of the Year’ award at the ETBFSI Excellence Awards in 2020, “Excellence in Digital Execution for Process Innovation” at the MINT and more.
Robust risk management based on domain expertise, proprietary risk models and data repository driving asset quality
Their quantitative analysis is based 35.17+ million data points that include loan pools they have evaluated and invested in for their originator partners from their investor partners through securitisations and direct assignments, as of March 31, 2024. Moreover, secondary data from external data sources such as credit bureaus and economic research portals is used for analysing pin code level borrower characteristics such as indebtedness, collection efficiencies, and sector growth trends.
Risk Factors
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If their borrowers default in their repayment obligations, it may lead to increased levels of non-performing assets (NPA), related provisions and write-offs, it can hurt the business.
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A significant portion of their investments is in credit facilities and debt instruments that are unsecured, and/or subordinated to other creditors. An inability to recover such investments may hurt the business.
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Their inability at any time in the future, to comply with or any delay in compliance with the strict regulatory requirements with respect to their listed non-convertible debentures can hurt the business.
Key Strategies
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Enhance the ecosystem by growing and deepening relationships with their partners, while leveraging and scaling up their technology products
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Expand to adjacent sectors such as climate lending and gold loans, and enhance their ESG risk management systems
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Expand their fund management channel
Northern ARC Capital Limited Key Financials
Here are the key financials for Northern ARC Capital Limited:
Particulars (in Rs. million)
Particulars (in Rs. million)
How to apply for IPO through ASBA
Kotak Securities
•04m 01s
How to apply for an IPO using UPI
Kotak Securities
•01m 19s
Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
How To Apply for Northern ARC Capital Ltd IPO?
Here are the steps to apply for Northern ARC Capital Ltd IPO:
Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
Northern ARC Capital Ltd IPO FAQs
When is Northern ARC Capital Ltd IPO listing date?
Northern ARC Capital Ltd IPO will list on 2024-09-24.
What is the issue size of Northern ARC Capital Ltd IPO?
778.42 is the issue size of Northern ARC Capital Ltd IPO.
What is the minimum lot size required for Northern ARC Capital Ltd IPO?
The minimum lot size is 57 shares and the investment required is ₹14991.
What is the price band of the Northern ARC Capital Ltd IPO?
The price band of Northern ARC Capital Ltd IPO is ₹249 to ₹263.
Where can I read more about Northern ARC Capital Ltd business?
You can read more about Northern ARC Capital Ltd and its IPO from the company’s red herring prospectus (RHP) here.
What is the Northern ARC Capital Limited IPO?
The Northern ARC Capital Limited IPO has an issue size of ₹ 777 crores. The IPO opens for subscription on 16/09/2024 and closes on 19/09/2024.
Who is the Registrar for Northern Arc Capital Limited IPO?
KFin Technologies Limited is the registrar for this IPO.
