Northern Arc Capital IPO Details, Financials, Valuation & Peers
Explore the Northern Arc Capital IPO opening on Sept 16 with an issue size of ₹777 crore. Get insights on IPO dates, financials, valuation and peer comparisons.
Overview
Northern Arc Capital Limited is a diversified financial services platform with a mission to address the diverse retail credit needs of underserved households and businesses in India. Since its inception in 2009, the company has facilitated over ₹1.73 trillion in financing, impacting over 101.82 million lives across India. Northern Arc focuses on key sectors such as MSME financing, microfinance, consumer finance, vehicle finance, affordable housing and agricultural finance. As of March 31, 2024, it ranks among India’s top diversified NBFCs in terms of Assets under Management (AUM), standing at ₹117,100.19 million across 671 districts in India. Northern Arc follows a multi-channel approach that includes lending directly to underserved customers, providing loans to partners for retail on-lending and managing debt funds.
Key Points:
- Diverse Financial Services: Northern Arc Capital operates across various sectors including MSME financing, microfinance, consumer finance, vehicle finance, affordable housing finance and agricultural finance.
- Extensive Reach: The company has a substantial presence with assets under management (AUM) of ₹117,100.19 million across 671 districts in 28 states and 7 union territories in India as of March 31, 2024.
- Robust Financial Performance: As of Fiscal 2024, the company has achieved significant financial milestones with low gross non-performing assets (GNPA) of 0.45% and net non-performing assets (NNPA) of 0.08%.
- Multi-Channel Approach: Northern Arc Capital employs a three-pronged approach to deliver credit:
- Lending: Direct financing from the company's balance sheet to borrowers, including MSME, microfinance and consumer finance sectors.
- Placements: Structuring and syndicating financing products, credit-enhancing transactions and co-investing with investor partners.
- Fund Management: Managing debt funds and portfolio management services through its subsidiary, NAIM, with ₹120,785.58 million deployed across 10 alternate investment funds (AIFs) and three portfolio management service (PMS) funds as of March 31, 2024.
- Technology Integration: The company utilizes a proprietary technology suite, including Nimbus (debt platform), nPOS (co-lending solution), Nu Score (analytical module), and AltiFi (investment platform) to enhance efficiency and scalability.
- Strong Credit Ratings: Northern Arc Capital has received a credit rating upgrade to AA- (Stable) by ICRA and India Ratings, reflecting its strong financial position and reliability in the market.
Objects of the Issue
- The Company proposes to utilize the Net Proceeds to meet future capital requirements towards onward lending.
IPO Details
Discover essential information crucial for understanding an IPO, including the Price Band, Fresh Issue, Offer For Sale, Total IPO Size and more. Explore these key details to gain insight into the company's public offering.
| Fields | Details |
|---|---|
| IPO Dates | 16 Sep - 19 Sep 2024 |
| IPO Price Band | ₹249 - ₹263 per share |
| Fresh Issue | ₹500 crore |
| Offer For Sale | 10,532,320 shares (₹277 crore) |
| Total IPO Size | ₹777 crore |
| Face Value | ₹10 |
| Listing On | BSE, NSE |
IPO Timeline
Explore important dates like IPO opening, closing, listing and others, outlining the journey of the Public Offering. This will help you grasp the entire IPO journey effortlessly.
| Event | Date |
|---|---|
| IPO Opening Date | 16 Sep 2024 |
| IPO Closing Date | 19 Sep 2024 |
| Basis Of Allotment | 20 Sep 2024 |
| Refunds | 23 Sep 2024 |
| Demat Transfer | 23 Sep 2024 |
| IPO Listing Date | 24 Sep 2024 |
Financial Statements
Explore a comprehensive financial data table showcasing key metrics including revenue, expenses, net income, and others. Gain valuable insights about the company's financial performance at a glance, facilitating informed decision-making and strategic planning for subscribing to the IPO.
| Period Ended | 31st March 2021 | 31st March 2022 | 31st March 2023 | 31st March 2024 |
|---|---|---|---|---|
| Total Income | 685.29 | 916.55 | 1,311.20 | 1,906.03 |
| Total Expenses | 585.29 | 668.16 | 988.10 | 1,484.83 |
| Net Profit/Loss | 76.60 | 181.94 | 242.21 | 317.69 |
| NPM (*) | 11.24 | 20.00 | 18.56 | 16.81 |
| Total Assets | 5,697.17 | 7,974.12 | 9,371.57 | 11,707.66 |
| Total Liabilities | 4,024.25 | 6,142.01 | 7,303.84 | 9,387.25 |
* NPM represents the net profit margin, calculated as a percentage. All other figures are presented in crore (₹cr)
Valuation
Uncover significant valuation metrics such as EPS (Earnings Per Share), ROE (Return on Equity), ROCE (Return on Capital Employed), D/E Ratio (Debt-to-Equity Ratio), Current Ratio, and EBITDA Margin. These key indicators offer insights into the company's financial standing and performance, aiding in informed investment decisions.
| Period Ended | 31st March 2021 | 31st March 2022 | 31st March 2023 | 31st March 2024 |
|---|---|---|---|---|
| EPS | 5.35 | 13.09 | 17.38 | 23.40 |
| ROE (%) | 4.58 | 9.93 | 11.72 | 13.69 |
| ROCE (%) | NA | NA | NA | NA |
| RoNW (%) | 4.27 | 9.92 | 11.76 | 13.32 |
| D/E Ratio | 2.35 | 3.27 | 3.40 | 3.90 |
| Current Ratio | NA | NA | NA | NA |
| EBITDA MARGIN (%) | 63.08 | 73.52 | 68.28 | 61.56 |
* Compiled from DRHP/RHP for valuation purposes.
Peer Comparison
Compare key financial metrics with industry peers to gain valuable insights into the company's performance compared to its competitors.
| Name | Revenue | P/E | EPS | RoNW | NAV |
|---|---|---|---|---|---|
| Northern Arc Capital Limited | 1,890.08 | 11.24 | 23.40 | 13.32 | 177.06 |
| Five-Star Business Finance Limited | 2,182.85 | 26.76 | 28.39 | 16.09 | 177.68 |
| SBFC Finance Limited | 1,018.64 | 36.64 | 2.30 | 8.53 | 25.87 |
| CreditAccess Grameen Limited | 5,166.67 | 13.11 | 90.41 | 5.01 | 1,809.93 |
| Fusion Micro Finance Limited | 2,316.73 | 6.21 | 50.11 | 17.74 | 281.93 |
| Bajaj Finance Limited | 54,969.49 | 30.93 | 235.98 | 18.84 | 1,239.03 |
| Cholamandalam Investment and Finance Company Limited | 19,139.62 | 36.22 | 41.06 | 17.46 | 233.26 |
| Poonawalla Fincorp Limited | 3,109.01 | 17.81 | 21.63 | 20.60 | 105.44 |
| MAS Financial Services Limited | 1,279.16 | 18.55 | 15.31 | 14.08 | 108.71 |
* Revenue in (₹cr), RoNW in (%), EPS, NAV in (₹). P/E ratio is based on the highest price from the IPO price band.
Subscription Data from NSE and BSE
| Investor Type | Subscribed |
|---|---|
| Qualified Institutional Buyer (QIB) | 242.73 |
| Non-Institutional Investor (NII/HNI) | 147.58 |
| Retail Individual Investor (RII) | 32.01 |
| Total | 117.19 |
* All figures represent multiples of the subscription. Check subscriptions for other ongoing issues here.
IPO Registrar
KFin Technologies Limited
Phone: +91 40 6716 2222/ 18003094001
Email: einward.ris@kfintech.com
Website: www.kfintech.com
Company Promoters
The Company does not have an identifiable promoter.
Lead Managers
- ICICI Securities Limited
- Axis Capital Limited
- Citigroup Global Markets India Private Limited
Company Address
Northern Arc Capital Limited
No. 1, Kanagam Village 10th Floor, IITM Research Park Taramani Chennai 600 113, Tamil Nadu, India
Phone: +91 44 6668 7000
Email: investors@northernarc.com
Website: www.northernarc.com
FAQs
- What is the issue size of the Northern Arc Capital IPO?The Northern Arc Capital IPO has an issue size of ₹777 crore. This includes a fresh issue of ₹500 crore and an offer for sale (OFS) of 10,532,320 shares (₹277 crore).
- What is the price band of the Northern Arc Capital IPO?The price band for the Northern Arc Capital IPO is ₹249 - ₹263 per share.
- What are the bidding dates for the Northern Arc Capital IPO?The Northern Arc Capital IPO will open for bidding on 16 Sep 2024 and close on 19 Sep 2024.
- What is the allotment date for the Northern Arc Capital IPO?The allotment date for the Northern Arc Capital IPO is 20 Sep 2024.
- What is the listing date for the Northern Arc Capital IPO?The listing date for the Northern Arc Capital IPO is 24 Sep 2024.
- What is the Northern Arc Capital IPO grey market premium?The grey market premium (GMP) for the Northern Arc Capital IPO is currently at ₹131, with an expected listing gain of approximately 49.81%. Remember, the grey market premium is not an official indicator, but it reflects market perception and demand for the IPO shares.