Northern Arc Capital IPO - Issue Details, Valuations, Financials, Growth Strategies, Risks And More: Geojit

Geojit Research Report

Northern Arc Capital Ltd. launched its initial public offering today and the offer closes for subscription on Sept. 19. The diversified financial services platform has fixed a price band of Rs 249-263 per share. The minimum lot size for bidding will be 57 shares.

The Rs 776 crore. crore IPO is a combination of a fresh issue of equity shares valued at Rs 500 crore and an offer for sale of 1.05 crore shares worth Rs 276 crore.

Object of the Issue

• Augmenting capital base to meet future capital requirements towards onward lending.

Strengths

• Catering to large addressable and underpenetrated market with strong sectoral expertise.

• Diversified sources of funding and proactive liquidity management.

• Robust risk management driving asset quality.

• Track record of consistent and resilient performance backed by professional management team.

Key Risks

• Slowdown in economy could increase gross provisions.

• f Volatility in interest rates and costs could hamper margins.

Our View

Northern Arc Capital have an experienced leadership team who have played a pivotal role in building the business and brand and expect to continue to benefit from the strong capital sponsorship and professional expertise.

The Indian retail credit market has grown at a strong pace over the last few years and is expected to further grow at a CAGR of 17-18% between FY24-26 and to reach Rs 100.9 trillion by FY26.

Northern Arc Capital has large ecosystem of partners and data and technology platform creating strong network effects, proprietary technology product suite transforming the debt market ecosystem and professional management team spurring the growth in the coming years. Hence, we recommend a Subscirbe to the issue.

Click on the attachment to read the full IPO report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.