Northern Arc Capital IPO opens on Monday: GMP, price band, other details in 10 points

Northern Arc Capital IPO: The mainboard initial public offering (IPO) of the non-banking financial company (NBFC) Northern Arc Capital Limited will open for subscription on Monday, September 16. Registered with the Reserve Bank of India (RBI) as a systemically important NBFC, Northern Arc Limited has operated in the country's financial inclusion space for over a decade. 

It is a leading player amongst the country's diversified NBFCs, with a business model that spans offerings, sectors, products, geographies, and borrower segments. The NBFC provides access to credit to low-income and underserved households and businesses directly and indirectly through Originator Partners. 

Also Read: Northern Arc Capital IPO: NBFC mobilises ₹229 crore from anchor investors ahead of subscription

The company was founded to meet the various retail credit needs of India's underserved families and companies. Over the past 15 years, the strategy has been to develop an all-encompassing play on India's retail credit ecosystem across many industries. Between March 31, 2024, and March 31, 2023, the profit after tax (PAT) climbed by 31 per cent, and revenue increased by 45 per cent.
 

Here are top 10 things to know about Northern Arc Capital IPO:

1.Northern Arc Capital IPO key dates: The mainboard issue will hit the D-Street for its three-day subscription on Monday, September 16, and will close on Thursday, September 19, 2024.

2.Northern Arc Capital IPO price band: The price band has been fixed at ₹249 to ₹263 per equity share with a face value of ₹10.

3.Northern Arc Capital IPO details: The IPO is a combination of a fresh issue of equity shares valued at ₹500 crore and an offer for sale (OFS) component of up to 10,532,320 equity shares worth ₹277 by investor shareholders. This aggregates the issue size to ₹777 crore.

Also Read: Northern Arc Capital IPO: Price band set at ₹249-263 per share; check issue size, key dates, more.

4.Northern Arc Capital IPO lot size: The IPO lot size is 57 equity shares, and thereafter, it will be in multiples of 57 equity shares. The floor and cap prices are 24.90 times and 26.30 times the face value of the equity shares, respectively.

5.Northern Arc Capital IPO listed peers: The peers are Five-Star Business Finance Ltd (with a P/E of 26.76), SBFC Finance Ltd (with a P/E of 36.64), CreditAccess Grameen Ltd (with a P/E of 13.12), Fusion Micro Finance Ltd (with a P/E of 6.21), Bajaj Finance Ltd (with a P/E of 30.93), Cholamandalam Investment and Finance Company Ltd (with a P/E of 36.22), Poonawalla Fincorp Ltd (with a P/E of 17.81), and MAS Financial Services Ltd (with a P/E of 18.55).

6.Northern Arc Capital IPO reservation: The NBFC has reserved not more than 50 per cent of the shares in the public issue for qualified institutional buyers (QIB), not less than 15 per cent for non-institutional Institutional Investors (NII), and not less than 35 per cent of the offer is reserved for retail investors. Eligible employees participating in the employee reservation portion will receive a discount of ₹24 per equity share, and this segment has up to 590,874 equity shares allocated to it.

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

7.Northern Arc Capital IPO allotment date and listing date: Tentatively, Northern Arc Capital IPO basis of allotment of shares will be finalised on Friday, September 20, and the company will initiate refunds on Monday, September 23, while the shares will be credited to the demat account of allottees on the same day following refund. Northern Arc Capital share price is likely to be listed on BSE and NSE on Tuesday, September 24.

8.Lead Manager and Registrar of Northern Arc Capital IPO: ICICI Securities Ltd, Axis Bank Ltd, and Citigroup Global Markets India Private Ltd are the book-running lead managers of the Northern Arc Capital IPO. The issue registrar is Kfin Technologies Ltd.

9.Northern Arc Capital IPO anchor investors fundraise: Northern Arc Capital IPO Limited has raised ₹229 crore from anchor investors ahead of its IPO subscription opening for bidding. Northern Arc Capital allotted 87.02 lakh equity shares to 15 funds at ₹263 apiece -- the upper end of the price band of the issue. This aggregates the transaction size to ₹229 crore.

10. Northern Arc Capital IPO GMP Today: GMP or grey market premium was Re 0. This indicates that Northern Arc Capital GMP has not started yet. 'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: Northern Arc Capital files DRHP with SEBI to raise ₹500 crore via IPO