Schedule of Northern Arc Capital
| Issue open date | 16 Sep 2024 |
| Issue close date | 19 Sep 2024 |
| UPI mandate deadline | 19 Sep 2024 (5 PM) |
| Allotment finalization | 20 Sep 2024 |
| Refund initiation | 23 Sep 2024 |
| Share credit | 23 Sep 2024 |
| Listing date | 24 Sep 2024 |
| Mandate end date | 04 Oct 2024 |
| Lock-in end date for anchor investors (50%) | 20 Oct 2024 |
| Lock-in end date for anchor investors (remaining) | 19 Dec 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Northern Arc Capital
Incorporated in 2009, Northern Arc Capital is a diversified financial services platform catering to the diverse retail credit requirements of under-served households and businesses in India. The company has developed domain expertise in its focused sectors like micro, small, and medium enterprises (MSMEs) financing, microfinance (MFI), consumer finance, vehicle finance, affordable housing finance, and agricultural finance. The company has been operating in the MSME, MFI, and consumer finance sectors for over 14 years, 15 years, and nine years, respectively. It follows a multi-channel approach that includes: 1) Lending: The company does Intermediate Retail Lending where it lends to and guarantees the borrowings of its large network of financial institution partners, technology platforms (Fintechs), and other entities that act as business correspondents to originate financial exposure. It also does direct-to-customer lending where it extends loans directly to under-served households and businesses through a ‘phygital’ (physical plus digital) approach. 2) Placements: Through its technology platform, Nimbus, it works with a large network of investors across different investor classes who use the company as a platform to access opportunities to invest in under-served sectors in India. 3)Fund Management: The fund Management channel is operated through its subsidiary, NAIM where the company Manages debenture funds and provides portfolio management services with a total volume of Rs. 120,785.58 million spread across 10 alternative investment funds (AIFs) and three PMS as of March 31, 2024.
Financials of Northern Arc Capital
IPO Issue size
| Funds Raised in the IPO | Amount |
| Overall | ₹777 crores |
| Fresh Issue | ₹500 crores |
| Offer for sale | ₹277 crores |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Meeting future capital requirements towards lending | 500 (100%) |
Strengths
- The company has facilitated financing of over ₹1.73 trillion since 2009, which has impacted over 101.82 million lives, created an ecosystem of 328 Originator Partners, 50 Retail Lending Partners, and 1,158 Investor partners
- It has collaborated with retail lending partners or through the branch network to offer rural finance and MSME loans across 671 districts, 28 states, and seven union territories in India, as of March 31, 2024.
- As of March 31, 2024, The company has multi-channel offerings comprising Lending, Placements and Fund Management channels, propertiary technology solutions, and a substantial data repository of over 35.17 million data points.
- The company has developed over 30 analytical models using the data repository and insights from its on-field surveillance and continuously strengthening them by adding more data points and sources as part of its robust risk management based on domain expertise, proprietary risk models, and data repository-driven asset quality.
- It maintains a well-diversified funding profile (including various banks, offshore financial institutions, and NBFCs) providing them a strong base for increased funding, a proactive liquidity management system, and a strong credit rating.
Risks
- The company operates in a highly competitive industry. Any inability to compete effectively may adversely affect the business, reputation, results of operations, cash flows, and financial condition.
- It may face asset-liability mismatches which would expose them to interest rate and liquidity risks that could have a material and adverse effect on the business, results of operations, cash flows, and financial condition.
- The business requires funds regularly, and any disruption in the funding sources would have a material adverse effect on the business.
- The business operations involve direct and indirect exposures to relatively high credit-risk borrowers in the under-served households and businesses of India. Any large-scale defaults in this category could adversely affect the business.
- Any adverse developments in its focused sectors like MSME financing, microfinance (MFI), consumer finance, vehicle finance, affordable housing finance, and agriculture finance could adversely affect the business.