Mon Sep 16 12:57:56 UTC 2024: ## Northern Arc Capital IPO Opens for Bidding, Aiming to Raise Rs 775 Crore

**Chennai-based financial services player Northern Arc Capital has launched its initial public offering (IPO) today, September 16, with a fixed price band of Rs 249-263 per share. The IPO, which closes on September 19, aims to raise Rs 777 crore, with a fresh share sale of Rs 500 crore and an offer-for-sale (OFS) of up to 1,05,32,320 equity shares by existing shareholders.**

Northern Arc Capital, founded in 2009, provides retail loans to underserved households and businesses across India. The company boasts a diverse business model, covering various offerings, sectors, products, geographies, and borrower categories. Since inception, Northern Arc has facilitated over Rs. 1.73 lakh crore worth of financing, reaching over 10.18 crore people.

**The IPO has been met with positive reviews from several brokerage firms.** Nirmal Bang Securities, SBI Securities, KR Choksey Finserv, Canara Bank Securities, and StoxBox all recommend subscribing to the issue, citing the company’s strong financial performance, diversified business model, and potential for growth in India’s underpenetrated credit markets.

**Northern Arc Capital’s financial performance has been impressive, with a net profit of Rs 317.69 crore and revenue of Rs 1,906.03 crore for the financial year ending March 31, 2024.** The company’s strong asset quality, with low GNPA and NNPA, and its focus on key sectors like micro, small, and medium enterprise (MSME) finance, microfinance, and consumer finance are further contributing to its positive outlook.

**The net proceeds from the IPO will be used to meet future capital requirements for onward lending.** The company’s expertise in lending across various sectors, along with its robust ecosystem of partners, puts it in a strong position to capitalize on the growth potential of India’s credit market.

**The shares of Northern Arc Capital are expected to be listed on both the BSE and NSE on September 24.** The company’s strong fundamentals and positive market sentiment suggest the IPO could see strong investor interest.

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