₹ 14991
₹249- ₹263
57
₹350
33
19 Sep 2024
Download23 Sep 2024
24 Sep 2024
Application Details
Northern Arc Capital's IPO is scheduled to open on September 16, 2024, and will remain open until September 19, 2024. The IPO shares have a face value of ₹10 each, with a price band set between ₹249 and ₹263 per share. Investors can apply in lots, with each lot comprising 57 shares. The minimum investment for retail investors is ₹14,991, while the maximum investment is ₹1,94,883 for 13 lots (741 shares).
The total issue size is 29,543,727 shares, amounting to ₹777.00 crore, with a fresh issue of 19,011,407 shares, aggregating up to ₹500.00 crore, and an offer for sale of 10,532,320 shares, worth ₹277.00 crore. Employees are offered a discount of ₹24 per share.
Key dates include the IPO opening on September 16 and closing on September 19, 2024. The basis of allotment will be finalized on September 20, 2024. Refunds will be initiated by September 23, 2024, with shares credited to demat accounts on the same day. The listing date is set for September 24, 2024.
About Northern Arc Capital Limited
Company Overview
Founded in 2009, Northern Arc Capital Limited (NACL) is a diversified financial services platform that focuses on catering to the diverse retail credit requirements of underserved households and businesses in India. Over the past 15 years, Northern Arc Capital has built a comprehensive presence in the retail credit ecosystem, expanding across multiple sectors including micro, small, and medium enterprises (MSMEs) financing, microfinance (MFI), consumer finance, vehicle finance, affordable housing finance, and agriculture finance.
Business Model
Northern Arc Capital operates a diversified business model with three primary channels: Lending, Placements, and Fund Management. This model spans various offerings, sectors, products, geographies, and borrower categories:
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Lending: The company extends financing through its balance sheet, enabling originator partners to offer loans or investments in debt to retail customers (Intermediate Retail Lending). It also provides Direct-to-Customer Lending, which includes collaborating with retail lending partners or using a branch network to offer rural finance and MSME loans. As of March 31, 2024, the company had an AUM of ₹117,100.19 million across 671 districts, 28 states, and seven union territories in India.
- Placements: Northern Arc facilitates loans to originator partners through various financing products, with a total AUM of ₹1,019,038.92 million as of March 31, 2024.
- Fund Management: The company manages debenture funds and provides portfolio management services, handling a total volume of ₹120,785.58 million across 10 alternative investment funds (AIFs) and three portfolio management service funds as of March 31, 2024.
Technology and Innovation
Northern Arc Capital has developed an end-to-end integrated technology product suite tailored to multiple sectors, which enhances its operational efficiency and market reach. The in-house technology stack includes:
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Nimbus: A curated debt platform that supports the end-to-end processing of debt transactions.
- nPOS: A co-lending and co-origination technology solution based on application programming interfaces (API).
- Nu Score: A machine learning-based analytical tool designed to assist originator partners in the loan underwriting process.
- AltiFi: An alternative retail debt investment platform.
These technologies leverage data and advanced analytics, with over 3.52 crore data points driving their quantitative analysis, including evaluations of loan pools and direct lending transactions.
FAQ
IPO stands for "Initial Public Offering." It's the process through which a privately-held company becomes publicly traded by offering its shares to the general public and listing them on a stock exchange for trading. This allows the company to raise capital from investors and grants individuals and institutions the opportunity to invest in and own a portion of the company.
The life cycle of an IPO, or Initial Public Offering, begins with a company's decision to go public. It involves hiring underwriters, registering with regulatory authorities, determining the IPO price, marketing to investors, and the subscription period where investors place orders for shares. After allocation and listing, shares become publicly tradable, and the company enters the secondary market. Ongoing reporting and corporate governance are crucial as the company continues to operate as a publicly-traded entity. The IPO aims to raise capital for growth and provides investors with opportunities to trade shares in the company.
An IPO (Initial Public Offering) is when a private company goes public by selling shares to the public. Investors buy these shares, giving them ownership in the company. It's a way for companies to raise capital and expand. The process involves underwriters, regulatory filings, setting the IPO price, and marketing to investors. After the IPO, shares can be traded on a stock exchange. IPOs offer opportunities and risks, so investors should research and consider carefully.
"Upcoming IPOs" refers to initial public offerings that have been announced by private companies but have not yet occurred. These are companies that plan to go public in the near future by issuing shares to the public and listing them on a stock exchange. Investors often keep an eye on upcoming IPOs as they represent opportunities to invest in companies at their early stages of public trading, potentially capturing growth potential. These offerings are typically accompanied by significant media and investor attention as they approach their launch dates.