Northern Arc Capital Ltd IPO GMP Price, Date, Review Details - IPO Upcoming

Last Updated on

Sep 8, 2023 12:27 PM

in

Written By

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

In this Article

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