Northern ARC Capital IPO: Price Band, Issue Value, Key Details

IPO Price Band and Issue Size

Northern ARC Capital, a leading provider of structured credit solutions, has set the price band for its upcoming initial public offering (IPO) at Rs 249 to Rs 263 per share. The IPO aims to raise up to Rs 777 crore, making it one of the largest public offerings in India this year.

Key Details of the IPO

The IPO will consist of a fresh issue of shares worth Rs 300 crore and an offer-for-sale (OFS) of up to 18,196,433 equity shares by existing shareholders. The OFS includes the sale of shares by Actis Capital, Malabar Investments, and Northern Arc Investments.

The IPO will open for subscription on October 4th, 2023, and close on October 6th, 2023. The company plans to utilize the proceeds from the IPO to expand its loan book, strengthen its capital base, and pursue growth opportunities.

Financial Performance and Growth Prospects

Northern ARC Capital has reported strong financial performance in recent years. For the fiscal year ended March 2023, the company posted a profit after tax of Rs 126 crore on revenue of Rs 234 crore. The company's assets under management (AUM) have grown steadily over the years, reaching Rs 4,120 crore as of March 2023.

The company's growth prospects are supported by the increasing demand for structured credit solutions in India. Structured credit products provide investors with higher returns and diversification benefits compared to traditional fixed-income instruments. Northern ARC Capital is well-positioned to capitalize on this growth opportunity.

Management and Track Record

Northern ARC Capital is led by a team of experienced professionals with a deep understanding of the structured credit market. The company's management team has a proven track record of delivering value to investors.

The company's investors include leading global financial institutions such as Actis Capital and Malabar Investments. These investors have a strong track record of investing in successful businesses.

Conclusion

The Northern ARC Capital IPO offers investors an opportunity to participate in the growth of a leading structured credit provider in India. The company's strong financial performance, experienced management team, and track record of delivering value to investors make it an attractive investment proposition.