Northern Arc Capital Limited IPO Review
Neutral263-263 · Mainboard
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Analyst Verdict
Northern Arc Capital Limited IPO
Neutral
IPO at a Glance
Price Band
263-263
Issue Size
777cr
Min. Investment
₹14,728
Opens
2024-09-14
Closes
2024-09-17
Listing
2024-09-22
Category
Mainboard
Key Strengths
✓The company has facilitated financing of over ₹1.73 trillion since 2009, which has impacted over 101.82 million lives, created an ecosystem of 328 Originator Partners, 50 Retail Lending Partners, and 1,158 Investor partners
✓It has collaborated with retail lending partners or through the branch network to offer rural finance and MSME loans across 671 districts, 28 states, and seven union territories in India, as of March 31, 2024.
✓As of March 31, 2024, The company has multi-channel offerings comprising Lending, Placements and Fund Management channels, propertiary technology solutions, and a substantial data repository of over 35.17 million data points.
✓The company has developed over 30 analytical models using the data repository and insights from its on-field surveillance and continuously strengthening them by adding more data points and sources as part of its robust risk management based on domain expertise, proprietary risk models, and data repository-driven asset quality.
✓It maintains a well-diversified funding profile (including various banks, offshore financial institutions, and NBFCs) providing them a strong base for increased funding, a proactive liquidity management system, and a strong credit rating.
Key Risks
⚠The company operates in a highly competitive industry. Any inability to compete effectively may adversely affect the business, reputation, results of operations, cash flows, and financial condition.
⚠It may face asset-liability mismatches which would expose them to interest rate and liquidity risks that could have a material and adverse effect on the business, results of operations, cash flows, and financial condition.
⚠The business requires funds regularly, and any disruption in the funding sources would have a material adverse effect on the business.
⚠The business operations involve direct and indirect exposures to relatively high credit-risk borrowers in the under-served households and businesses of India. Any large-scale defaults in this category could adversely affect the business.
⚠Any adverse developments in its focused sectors like MSME financing, microfinance (MFI), consumer finance, vehicle finance, affordable housing finance, and agriculture finance could adversely affect the business.
Frequently Asked Questions
Should I apply for Northern Arc Capital Limited IPO?
Based on our analysis, our rating for Northern Arc Capital Limited IPO is: Neutral. Review the full analysis including strengths, risks, and financials on CheckIPO before making a decision.
What are the key risks of Northern Arc Capital Limited IPO?
The company operates in a highly competitive industry. Any inability to compete effectively may adversely affect the business, reputation, results of operations, cash flows, and financial condition. It may face asset-liability mismatches which would expose them to interest rate and liquidity risks that could have a material and adverse effect on the business, results of operations, cash flows, and
What are the strengths of Northern Arc Capital Limited IPO?
The company has facilitated financing of over ₹1.73 trillion since 2009, which has impacted over 101.82 million lives, created an ecosystem of 328 Originator Partners, 50 Retail Lending Partners, and 1,158 Investor partners It has collaborated with retail lending partners or through the branch network to offer rural finance and MSME loans across 671 districts, 28 states, and seven union territorie
What is the price band of Northern Arc Capital Limited IPO?
The price band for Northern Arc Capital Limited IPO is 263-263. The IPO has closed.
Full Analysis Available
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