Northern Arc Capital IPO - Investment Rationale, Issue Details, Strengths, Risks And More: Anand Rathi

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Anand Rathi 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..Objects of the Issue: To meet the future capital requirements towards onward lending.The company expects to receive the benefits of listing of the Equity Shares on the Stock Exchanges, enhancement of their brand name and creation of a public market for their Equity Shares in India..Valuation & outlook Over the past 15 years, North Arc Capital have significantly contributed to the Indian retail credit market, facilitating financing of more than Rs 1.73 trillion since 2009, impacting over 101.82 million lives. As of March 31, 2024, they have established an ecosystem that includes 328 Originator Partners, 50 Retail Lending Partners, and 1,158 Investor Partners. Their multi-channel offerings encompass Lending, Placements, and Fund Management, supported by proprietary technology solutions and a robust data repository containing over 35.17 million data points. They intend to expand their presence to more effectively reach and serve underserved households and businesses in their target sectors across India. This will involve enhancing and growing their origination channels by bringing new Originator Partners onto their platform, financing the debt capital needs for the growth of these partners, and onboarding new Retail Lending Partners to help them access more direct-to-customer borrowers. At the upper price band company is valued at P/BV of 1.4X with a market cap of Rs 42,428.6 million post issue of equity shares. Thus, we recommend an “Subscribe” rating to the IPO..Click on the attachment to read the full IPO report:.Northern Arc Capital IPO - Issue Details, Financials, Peer Comparison, Strengths, Risks And More: DRChoksey.DISCLAIMERThis 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.

Northern Arc Capital IPO - Investment Rationale, Issue Details, Strengths, Risks And More: Anand Rathi

The Rs 776 crore. crore IPO opened today for subscription, and the NBFC has fixed a price band of Rs 249-263 per share.

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Northern Arc Capital IPO - Investment Rationale, Issue Details, Strengths, Risks And More: Anand Rathi

The Rs 776 crore. crore IPO opened today for subscription, and the NBFC has fixed a price band of Rs 249-263 per share.

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