Northern Arc Capital IPO subscribed 1.3 times so far on Day 1

16 Sep 2024 , 01:25 PM

Northern Arc Capital’s initial public offering (IPO) started for subscription today and will be ready for investor bids until September 19. Prior to the issuance, the company raised Rs 228 crore from anchor investors.

The public offering includes an offer for sale of up to Rs 277 crore and a new issue of up to Rs 500 crore.

The company has set a price band of Rs 249-263 per share, with buyers able to bid for 57 shares in one lot.

As of 1:22 p.m., the retail portion was subscribed 1.96 times followed by NII portion that was subscribed 1.58 times. The QIB portion had received 8,607 bids.

The net proceeds will be used to cover future capital requirements for onwards lending. Northern Arc is a diversified financial services platform founded to meet the diverse retail credit needs of India’s underserved households and enterprises.

Its business approach is diverse, spanning multiple offerings, sectors, products, countries, and borrower categories. As of March 2024, the company processed over ₹1.73 trillion in finance, reaching more than 100 million consumers in India.

Northern Arc employs a bespoke risk management solution across all sectors and channels, aided by a vast data collection of over 35.17 million data points. These data-driven insights, paired with secondary sources and field monitoring, improve the company’s risk models.

According to a CRISIL report, the company had one of the lowest gross non-performing assets (GNPA) of 0.45% and net non-performing assets (NNPA) of 0.08% in fiscal year 24.

In FY24, the company’s net interest income (NII) surged 67% year on year (YoY) to Rs 986 crore, while net profit increased by 31% YoY.

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