Northern Arc IPO GMP, Review & Important Detail 2021
Northern Arc Capital, a prominent non-banking financing company, offers a bright viewpoint to finance. They serve as a vital link between high-quality last-mile lending institutions and enterprises and conventional capital markets investors. Northern Arc IPO will hit the market in September 2021.
About Northern Arc Capital
Northern Arc Capital is a financial services platform with the primary goal of meeting the various credit needs of underserved families and companies by offering efficient and dependable loan financing.
They have been active in the financial inclusion area for over a decade, having been certified with the RBI as a systemically significant, non-deposit taking non-banking financing company (“NBFC”).
With a business strategy that is diverse across services, industries, products, regions, and borrower categories, they are a prominent player among India’s varied NBFCs.
Service
Through our Originator Partners, they offer loans to underserved families and companies both directly and indirectly.
They employ a risk management approach that combines exclusive statistical data science focused on more than 22 million different datasets with qualitative field-level insights to help with credit evaluation and surveillance.
They can achieve this at scale because to their patented integrated technology solution named “Nimbus by Northern ArcTM” (“Nimbus”).
In Fiscal 2020, their digital activities garnered them the distinction for “Best Digital NBFC of the Year” at the Economic Times BFSI Excellence Awards and “Excellence in Digital Execution for Process Innovation” at the Mint Awards.
Leading Process
Their diverse platform connects small businesses and individuals with a large network of financial institution collaborators, digital tools (such as financial technology businesses (“Fintechs”), and other organisations that act as corporate correspondents to arise financial exposure (jointly, “Originator Partners”).
While they lend to Originator Associates who are financial companies in character for the goal of on-lending, they also work with some Originator Associates who allow us to lend straightforwardly to retail borrowers (referred to as “Retail Lending Associates”).
Northern Arc IPO
Northern Arc Capital, headquartered in chennai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 300 crore Fresh issue & Offer for sale(OFS) of 36,520,585 equity shares on 15 July, 2021.
They planned to collect around 1000 cr via its initial public offering (IPO). There will be fresh issue of 300 & OFS (Offer for sale) of 36,520,585 equity shares from existing Principal Shareholders mentioned in the drhp of the company.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Basis of The offer
The following are among the qualitative variables that go into determining the Offer Price:
- Large, diverse, and expanding base of Initiator and Investor Partners with established long-term ties and network effects.
- Their unique technology solution, Nimbus, enhances company potential while also increasing efficiency.
- A track record of providing tailored debt solutions.
- Business model that is diverse in terms of industries, offers, products, regions, and borrower categories.
- Domain expertise, qualitative field-level insights, and a data lake underpin a strong risk management system.
- Maintaining a diverse source of finance and aggressive liquidity management for our own deployment.
- High governance norms and competent professional management are emphasized.
Originally published at https://profitmust.com on July 18, 2021.
