Northern Arc Capital Limited is gearing up for a significant IPO launch on September 16, 2024. The company, known for its extensive focus on retail credit in India, is issuing shares worth ₹777 crores. This includes a Fresh Issue of ₹500 crores and an Offer for Sale amounting to ₹277 crores. Investors have a subscription window from September 16 to September 19, 2024, with allotment expected by September 20, 2024 and a tentative listing date on September 24, 2024.

Northern Arc Capital IPO Details: The IPO is priced between ₹249 and ₹263 per share. Retail investors need to invest a minimum of ₹14,991 for 57 shares, while High-Net-Worth Individuals (HNIs) are required to invest in 14 lots (798 shares), totaling ₹209,874. ICICI Securities Limited, Axis Capital Limited, and Citigroup Global Markets India Private Limited are the lead managers for the IPO, and KFin Technologies Limited will be the registrar.

Grey Market Premium (GMP): The Grey Market Premium for Northern Arc Capital is anticipated to be between ₹135 and ₹145. Although GMP reflects market sentiment, it is not a reliable indicator of actual share price movements. GMP serves mainly for informational purposes and does not guarantee actual listing gains.

Subscription Status and Allotment: The IPO subscription begins on September 16, 2024, and updates will be available in real-time. Northern Arc Capital has already raised ₹25.77 crore from Anchor Investors, allocating 979,887 shares at ₹263 each. For detailed allotment status, investors can check the registrar’s website on September 20, 2024. The process involves selecting Northern Arc Capital Limited IPO, entering application details, and submitting to view allotment status.

Objectives of the IPO: The primary objective of this IPO is to utilize the net proceeds for future capital needs related to onward lending. This move aligns with Northern Arc Capital’s mission to enhance its retail credit ecosystem in India.

Financial Overview: For fiscal years 2024, 2023, and 2022, Northern Arc Capital reported revenues of ₹19,060.33 million, ₹13,112.00 million, and ₹9,165.45 million, respectively. EBITDA figures were ₹11,635.65 million, ₹8,907.18 million, and ₹6,686.37 million for the same periods. Profit after Tax stood at ₹3,083.34 million for FY24, compared to ₹2,300.11 million and ₹1,725.00 million in the previous two years. The pre-issue EPS is ₹22.40, and the post-issue EPS is ₹19.04, with a pre-issue P/E ratio of 11.74x and a post-issue P/E ratio of 13.81x, against an industry P/E ratio of 23.38x. The company’s ROE for FY24 is 13.32%.

IPO Review: The IPO appears reasonably priced with a potential listing gain of 50% - 55%, based on current GMP and financial metrics. Investors looking for short-term gains or long-term investment may consider applying.

Disclaimer: This information is for educational purposes and should not be considered as financial advice. It is based on available data and market perceptions and is subject to change. Always seek professional advice before making investment decisions.

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