Northern Arc Capital, formed in 1989, is a non-bank financial institution that specializes in providing loan funding to underprivileged families and businesses.

They are one of India’s best-known diversified NBFCs. Northern Arc operates in a variety of industries, including microfinance, MSME financing, car finance, consumer finance, and affordable housing finance. Since its inception, the organization has raised more than Rs. 9,500 billion for its clients. Northern Arc Capital Ltd. filed their DRHP with SEBI on July 15, 2021. The offering includes a new issue of Rs. 300 crore as well as an offer to sell up to 36,520,585 equity shares. The company is also mulling a Rs. 150 crore pre-IPO
placement. There are three main services provided by the company:
- Financing: lending to underserved people and enterprises, as well as lending to mid-sized firms
- Syndication and structuring
- Fund management is handled by Northern Arc Investment Managers Pvt. Ltd., a subsidiary of Northern Arc.
They have had a total effect on 54.21 million people since their beginning.
Northern Arc Capital IPO Objectives
- Utilize the Net Proceeds to increase the company’s capital base in order to meet future capital requirements.
- The Company anticipates benefits from listing the Equity Shares on stock exchanges.
- Enhancement of the Company’s brand identity and establishment of a public market in India for its Equity Shares
- The major purposes outlined in the Memorandum of Association enable our Company to carry out its current activities as well as those for which funds are generated through the Fresh Issue.
Why should you invest in Northern Arc Capital IPO?
- Northern Arc Capital’s AUM from three core offerings has grown at a CAGR of 56.12% over the last ten years.
- Since the platform’s inception, they have raised over Rs. 950.00 billion in funds for their clients, completed over 900 structured finance transactions, secured over Rs. 28.00 billion in investor commitments across nine high-performing funds, and accumulated over 22 million data points on customer repayment behaviour.
Northern Arc Capital IPO Financials
Particulars (in Rs. Crores) | FY 2021 | FY 2020 | FY 2019 |
---|---|---|---|
Revenue | 681.17 | 632.82 | 601.55 |
PAT | 76.6 | 102.93 | 115.41 |
EPS (In Rs) | 5.35 | 7.92 | 10.91 |
Total Assets | 5,697.16 | 4,597.5 | 4,277.99 |
Total Borrowings | 3,932 | 2,921.5 | 2,925 |
Equity Share Capital | 87.92 | 87.47 | 78.34 |
Know before investing
Strengths
- The NBFC has a growing and diverse pool of Originator Partners and Investment Partners from a variety of industries.
- Their Nimbus technology system, which they developed themselves, enables them to expand their commercial options while also improving productivity.
- Geographically, in terms of offers, products, and borrower groups, they are quite diverse.
- Over the decades that they have been in business, they have refined and enhanced their risk management method.
Risks
- Any disruptions in the NBFC’s funding sources will have a significant impact on the company’s operations.
- Northern Arc is exposed to highly high-risk borrowers, and any large-scale defaults in this sector will have a negative impact on the company’s financials and operations.
- In India, the microfinance industry is highly regulated, and any bad changes in this sector would have an impact on the business.
- It’s likely that the fund management industry will confront new challenges.
Northern Arc Capital Peer Comparison
Firm Name | Total AUM (INR cr) | Year of incorporation |
---|---|---|
Anicut Capital | 1,500 | 2015 |
Centrum Alternatives | 650 | 2017 |
Northern Arc Investments | 2,000 | 2014 |
Vivriti Asset Management | 236 | 2017 |
Northern Arc Capital Ltd IPO FAQs:
Q1. What is Northern Arc Capital IPO?
Ans. Northern Arc Capital IPO comprises a fresh issue of Rs 300 crore and an offer for sale of up to 3,65,20,585 equity shares by the shareholders
Q2. When will the Northern Arc Capital IPO allotment be available?
Ans. Details are not available.
Q3. What will be the Northern Arc Capital IPO lot size?
Ans. Details are not available.
Q4. When will Northern Arc Capital IPO open for subscription?
Ans. Details are not available.
Q5. What minimum lot size can retail investors subscribe to?
Ans. Retail investors can apply for a minimum of one lot.
Q6. When will Northern Arc Capital IPO list on exchanges?
Ans. Details are not available. Usually, it takes ten working days from the last day of subscription to finally list the IPOs on the stock exchanges.
Q7. What is the size of Northern Arc Capital IPO?
Ans. Details are not available.
Q8. How will I receive shares?
Ans. Your shares will get credited directly to your Demat account.
Q9. Is it necessary to approve a UPI mandate request immediately?
Ans. Approving the UPI payment is the final step of the IPO application. You will get T+1 days to approve the payment mandate in your UPI id.
Q10. What is the minimum order quantity for Northern Arc Capital IPO?
Ans. Details are not available.