Northern ARC Capital Ltd IPO

Last Updated: 18 October 2024 10:17 AM by 5Paisa

IPO Synopsis:
Northern Arc Capital Ltd filed its DRHP with SEBI on 15th July, 2021. The issue comprises of a fresh issue of Rs.300 crores and an offer for sale of up to 36,520,585 equity shares. A pre-IPO placement of Rs.150 crore is also being considered by the company. 
The book running lead managers to the issue are IIFL Securities, Axis Capital, SBI Capital Markets and Credit Suisse Securities. 

Objectives of the issue:
The main objective of the offer is to augment the capital base of the company and for general corporate purposes
 

Northern Arc Capital, established in 1989, is an NBFC that primarily focuses on catering to the credit requirements of the under-served households and businesses and provide them with debt finance. They are one of the leading players in the India’s diversified NBFCs. Northern Arc operates in sectors like microfinance, MSME finance, vehicle finance, consumer finance, affordable housing finance etc. 
Since the company started, the company has raised over Rs.9,500 billion in funds for their clients. The company has 3 primary offerings-
1. Financing: Lending to under served households and businesses, lending to mid market companies
2. Syndication and structuring
3. Fund management- This is done through their subsidiary Northern Arc Investment Managers Pvt Ltd
Since their inception, they have been able to impact over 54.21 million lives and 42 million of them are women. The NBFC has executed more than 900 structured finance transactions and have built partnerships with 228 orginator partners. They also have relationships with 400 Investment Partners across various investment classes. 
 

Financials: