Northern Arc Capital Launches ₹777 Crore IPO on Sept 16 with Strong Growth Prospects
BILKULONLINE
Ahmedabad, Sept 13: Northern Arc Capital Limited, a leading diversified financial services platform, is set to open its Initial Public Offering (IPO) on September 16, 2024. The company aims to raise ₹777 crore through a combination of a fresh issue of ₹500 crore and an offer for sale of 10,532,320 equity shares. The IPO will close on September 19, 2024, with the listing scheduled for September 24, 2024, on both the BSE and NSE.
Key IPO Details:
Issue Size: ₹777 crore (₹500 crore fresh issue + OFS)
Price Band: ₹249 – ₹263 per share
IPO Lot Size: 57 shares, requiring a minimum investment of ₹14,991
Retail Investor Quota: 35%, with 50% reserved for Qualified Institutional Buyers (QIB) and 15% for High Net-worth Individuals (HNI)
Lead Managers: ICICI Securities, Axis Bank, Citigroup Global Markets India
Strong Financial Performance:
Northern Arc Capital reported robust financial growth, with revenues reaching ₹1,906.03 crore in FY24, up from ₹1,311.2 crore in FY23. The company’s profits also saw a surge, climbing from ₹242.21 crore in 2023 to ₹317.69 crore in 2024. These results underscore the company’s strong position in the market, making this IPO a promising opportunity for long-term investors.
Diversified Financial Services Play:
Northern Arc Capital has been operating in the Indian financial sector for over 15 years, catering to the underserved segments of the market. It focuses on sectors like microfinance (MFI), micro, small, and medium enterprises (MSME) finance, consumer finance, vehicle finance, affordable housing, and agricultural finance. As of March 31, 2024, the company has facilitated financing worth over ₹1.73 trillion, impacting more than 101.82 million lives across India.
Market Outlook:
With its well-diversified portfolio and innovative business model, Northern Arc Capital has built a scalable and efficient platform. Its end-to-end integrated technology product suite is customized to multiple sectors, enhancing its capabilities in addressing the retail credit needs of underserved households and businesses.
Industry experts view Northern Arc Capital’s IPO as a strong investment opportunity, particularly for those seeking exposure to India’s growing financial inclusion sector. Investors are advised to consider this IPO for a long-term horizon given the company’s impressive financial trajectory and potential for further growth.
Allotment and Listing:
The allotment of shares is expected to be finalized on September 20, 2024, with the listing on the BSE and NSE on September 24, 2024.
Northern Arc Capital’s extensive experience and focus on financial inclusion make this a notable IPO for investors looking to be part of a growing NBFC in India’s diversified financial services space.
Ashish Mehrotra, MD & CEO, Atul Tibrewal, CFO and Pardhasaradhi Rallabandi GRO & Governance Head of Morthern Arc Capital were in Ahmedabad on Thursday to interact with the media.
(Disclaimer: Investors must thoroughly study the company profile and details before investing)
