Northern Arc Capital IPO: From financials to GMP, here are 10 things you should know from the RHP before subscribing

Northern Arc Capital IPO. The initial Public offering of Northern Arc Capital Ltd starts on 16 September 2024. From financials to GMP, here are 10 things you should know from the RHP before subscribing

Northern Arc Capital IPO: 10 Key things

1.Northern Arc Capital IPO: Key dates

On September 16, 2024, the Northern Arc Capital IPO goes live for subscriptions, and it ends on September 19, 2024. On Friday, September 20, 2024, the allotment for the Northern Arc Capital IPO is anticipated to be completed. Tuesday, September 24, 2024 is the tentative listing date for the Northern Arc Capital IPO on the BSE and NSE.

2.Northern Arc Capital IPO- Subscribing details

The price band for Northern Arc Capital's first public offering is ₹249 to ₹263.

An application must have a minimum lot size of 57 shares.

Retail investors are required to invest a minimum of ₹14,991. For both small NII and big NII, the minimum lot size investment is ₹209,874 for 14 lots (798 shares) and ₹1,004,397 for 67 lots (3,819 shares) respectively.

Not less than 35.00% of the Net Offer is for retail investors, while not less than 15.00% of the Net Offer is for NII and not more than 50% for QIB

3.Northern Arc Capital IPO: Objectives of the issue

Northern Arc Capital IPO is a book built issue of ₹777.00 crores. The issue is a comprises of an offer for sale component as well as fresh issue of Shares. While 1.9 crore shares aggregating to ₹500.00 crores are being issued fresh, the offer for sale component is for 1.05 crore shares aggregating to ₹277.00 crores.

The company plans to utilize the Net Proceeds from the IPO for meeting its future capital requirements for onward lending business.

4.About Northern Arc Capital

Established in 2009, Northern Arc Capital Limited provides retail loans to underprivileged Indian households and enterprises.

The business strategy of Northern Arc Capital is diverse, encompassing a range of services, industries, goods, regions, and borrower types.

5.Northern Arc Capital IPO. Financials

Northern Arc Capital Limited's profit after tax or net profit increased by 31% and revenue were up by 45% during FY24 over Fy23.

6. Northern Arc Capital IPO. Lead Managers and Registrars

The book running lead managers of the Northern Arc Capital IPO are ICICI Securities Limited, Axis Bank Limited, and Citigroup Global Markets India Private Limited. The registrar of the issue is Kfin Technologies Limited.

7. Northern Arc Capital IPO. Peers

Five-Star Business Finance Limited, SBFC Finance Limited, CreditAccess Grameen, Fusion Micro Finance Ltd, Bajaj Finance Ltd, Cholamandalam Investment and Finance Company Ltd , Poonawalla Fincorp Ltd, MAS Financial Services Ltd are the listed peers of Norther Arc Capital Ltd as per the RHP

8.Northern Arc Capital IPO: Key Risks

Key risks from the Northern Arc Capital IPO RHP are

Any adverse developments in its focused sectors could adversely affect its business, results of operations, cash flows and financial conditions

Its business requires funds regularly, and any disruption in its funding sources would have a material adverse effect on its business, results of operations, cash flows and financial condition

9.Northern Arc Capital IPO. Promoters

Northern Arc Capital Ltd does not have any identifiable promoter in terms of the SEBI ICDR Regulations and the Companies Act, 2013

10.Northern Arc Capital IPO. GMP

Northern Arc Capital IPO GMP as per the Investorgain.com data is currently Nil This means that the Northern Arc Capital' IPO shares are presumably being offered without any premium in the Grey market.

The street thereby is expecting Northern Arc Capital IPO listing on the issue price which stands at ₹263

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