The Northern Arc Capital Ltd Date Will Be Updated Soon .
Northern Arc Capital, formed in 1989, is a non-bank financial institution that specializes in providing loan funding to underprivileged families and businesses.
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Northern Arc Capital Ltd GMP
The Northern Arc Capital Ltd IPO GMP is ₹[].
IPO Overview
Northern Arc Capital Ltd filed its DRHP with SEBI on 15th July, 2021. The issue comprises of a fresh issue of Rs.300 crores and an offer for sale of up to 36,520,585 equity shares. A pre-IPO placement of Rs.150 crore is also being considered by the company. The book running lead managers to the issue are IIFL Securities, Axis Capital, SBI Capital Markets and Credit Suisse Securities.
Northern Arc Capital, established in 1989, is an NBFC that primarily focuses on catering to the credit requirements of the under-served households and businesses and provide them with debt finance. They are one of the leading players in the India’s diversified NBFCs. Northern Arc operates in sectors like microfinance, MSME finance, vehicle finance, consumer finance, affordable housing finance etc.
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 |
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 |
Company Profile
They are one of India’s best-known diversified NBFCs. Northern Arc operates in various 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 its DRHP with SEBI on July 15, 2021. The offering includes a new issue of Rs. 300 crore and an offer to sell up to 36,520,585 equity shares. The company is also mulling a Rs. 150 crore pre-IPO placement. 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.
IPO Strenghts
- Experienced promoters and a competent management team.
- Well-established relationships with a loyal customer base.
- Access to markets worldwide, enabling global reach.
IPO Weakness
- Heavy reliance on customers based in the United States.
- Need to adhere to multiple laws and regulations in these countries to ensure compliance.
- Competition from other players in the market.
