Northern Arc Unlisted Shares
Northern Arc Capital Limited
INE850M01015
Listing Status: Now Listed
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About Northern Arc Unlisted Shares
Overview of Northern Arc Unlisted Shares
Northern Arc Capital Limited (NACL) is a prominent financial services company in India, specializing in enabling small and medium-sized NBFCs and fintech entities to access debt capital. Founded in 1989, Northern Arc Capital Limited is registered with the Reserve Bank of India. Over the years, Northern Arc has established itself as a key player in the financial ecosystem, particularly focusing on sectors that are often underserved by traditional financial institutions.
Company Name | NORTHERN ARC CAPITAL LIMITED |
Company Type | Unlisted Public Company |
Industry | Financial Service-NBFC |
Founded | 1989 |
Registered Address | Chennai, Tamil Nadu, India |
Core Activities
Northern Arc Capital Limited’s primary operations include:
- Debt Facilitation and Lending: NACL assists NBFCs and fintechs in accessing debt capital through various means, including securitisation, debentures, and co-lending. It also provides direct loans to these entities and invests in subordinated tranches of securitisation pools.
- Lending to Corporates and Retail Customers: In addition to supporting NBFCs and fintechs, NACL also lends to mid-market corporates and retail customers.
- Microfinance and Sectoral Expansion: Initially focused on microfinance, NACL has diversified its NBFC activities to include affordable housing finance, small business loans, commercial vehicle finance, agricultural finance, corporate finance, and consumer finance.
Expansion and Diversification
Since its inception, Northern Arc has significantly expanded its scope and operations:
- Retail Segments: In the financial year 2022, NACL ventured into direct retail lending, including microfinance institutions, supply chain finance, loan against property, and education loans.
- Focus Sectors: NACL has developed expertise across six key sectors: MSME financing, microfinance, consumer finance, vehicle finance (including commercial vehicles, two-wheelers, and electric vehicles), affordable housing finance, and agriculture finance.
- Climate and Renewable Financing: The company is also building expertise in climate and renewable financing sectors.
Technology and Innovation
Northern Arc’s success is bolstered by its proprietary end-to-end integrated technology solutions:
- Nimbus: A curated debt platform that enables the complete processing of debt transactions.
- nPOS: A co-lending and co-origination technology solution utilizing application programming interfaces (APIs).
- Nu Score: A machine learning-based analytical module designed to aid Originator Partners in the loan underwriting process.
- AltiFi: An alternative retail debt investment platform that expands the company’s reach in retail debt investments.
Subsidiary Companies
SUBSIDIARY | DESCRIPTION |
---|---|
Northern Arc Investment Adviser Services Private Limited | Facilitates investments and acts as an advisor to provide financial/investment advice to both Indian and foreign investors. |
Northern Arc Investment Managers Private Limited | Carries on the business of an investment company and provides portfolio management services to offshore funds and all kinds of AIFs. |
Pragati Finserv Pvt Ltd | Incorporated in FY21, offers small-ticket loans through a digital platform to under-served rural and semi-urban areas. |
Northern Arc Foundation | Acts as the CSR arm for Northern Arc Capital, focusing on skill building, employment development, and education. |
Northern Arc Securities Private Limited | Established as a 100% subsidiary to register as a stockbroker in the debt segment. Responsible for the operations of the AltiFi platform after broking registration. |
Board Members
Insights of Northern Arc Unlisted Shares
Financial Highlights
₹ in crores
Particulars | FY 2023-24 | FY 2022-23 | FY 2021-22 |
Total Income | 1906 | 1311 | 916 |
EBITDA | 1163 | 892 | 668 |
PAT | 317 | 242 | 182 |
EBITDA Margin | 61% | 68% | 73% |
Net Profit Margin | 17% | 18% | 20% |
EPS | 24.38 | 25.85 | 19.52 |
GNPA - 0.76% in FY23 | 0.51% FY22
NNPA- 0.36% in FY 23 | 0.18% in FY 22
In FY24, the company’s PAT rose to INR 317 crore from INR 242 crore in FY23, driven by improved yields and reduced credit costs. This led to a higher ROE of 12.6% and ROA of 2.8%. With healthy liquidity, marked by substantial cash reserves and unutilized bank limits, the company remained resilient against unforeseen challenges and agile in seizing opportunities. Total Income surged by 45% to INR 1906 crore, EBITDA by 30% to INR 1163 crore, and PAT by 31% to INR 317 crore, reflecting the company’s commitment to financial strength and operational excellence.
Revenue Breakup
₹ in crores
Particulars | FY 2023-24 | FY 2022-23 |
Financing Activity | 1840 | 1252 |
Investment advisory services | – | 0.35 |
Investment management services | 35 | 40 |
Portfolio management services | 16 | 26 |
Others | 106 | 38 |
Total | 1999 | 1358 |
Less: Intersegment revenue | (108) | (53) |
Total Segment revenue | 1890 | 1304 |
AUM by Sector
Particulars | As of September 30, 2023 | As of March 31, 2023 | As of March 31, 2022 | As of March 31, 2021 |
MSME | 3,767 | 3,361 | 2,836 | 1,909 |
MFI | 2,696 | 2,459 | 1,918 | 1,725 |
Consumer finance | 2,449 | 1,892 | 1,096 | 416 |
Vehicle finance | 729 | 865 | 829 | 819 |
Affordable housing finance | 289 | 247 | 234 | 248 |
Agriculture | 148 | 181 | 193 | 100 |
Total AUM | 10,081 | 9,008 | 7,108 | 5,220 |
Industry Overview
NBFCs (Non-Banking Financial Companies) have become pivotal in advancing financial inclusion in India by effectively serving underserved segments. Their increasing market share is due to flexible RBI regulations and a focus on specific sectors and niche markets.
Industry Highlights:
- Loan Disbursement: As of September 2023, NBFCs in India have disbursed loans exceeding 450 billion USD.
- AUM Growth: According to ICRA, the NBFC-Retail AUM growth rate was 16-18% in FY23 and is projected to be 12-14% in FY24.
- Projected CAGR: The NBFC sector is expected to grow at a CAGR of 18.5% from 2021 to 2026.
Key Drivers:
- Rising Middle Class: Increasing disposable income among the growing middle class drives demand for credit, which NBFCs effectively meet.
- Financial Inclusion: NBFCs are crucial in reaching underserved segments, especially in rural areas with limited traditional bank penetration.
- Government Support: Policy initiatives and supportive NBFC regulations create a conducive environment for their growth
IPO Plans
Northern Arc Capital has refiled its preliminary papers with the SEBI for a public issue on February 2, comprising a fresh issuance of shares worth Rs 500 crore and an offer-for-sale of 2.1 crore equity shares by several investors. The company may also consider raising up to Rs 100 crore through a pre-IPO placement. The IPO, which aims to bolster future capital requirements for lending activities, comes after its previous attempt in 2021. Despite a slight increase in non-performing assets, the company maintains a strong asset quality. ICICI Securities, Axis Capital, and Citigroup Global Markets India are managing the IPO.
Peer Comparison
₹ in crores-FY 2024
Particulars | Northern Arc Capital Limited | Five Star Business Finance Limited | Ugro Capital Limited | Arman Financial Services |
Total Income | 1906 | 2195 | 1082 | 661 |
PAT | 317 | 836 | 119 | 174 |
Net Profit Margin | 17% | 38% | 11% | 26% |
EPS | 24.38 | 28.58 | 12.86 | 165.67 |
Market Cap (June 2024) | 5200 | 20787 | 2606 | 2382 |
CMP (June 2024) | 400 | 711 | 281 | 2274 |
P/E | 16 | 25 | 22 | 14 |
P/B | 3.63 | 4.3 | 1.82 | 2.88 |
Recent News
May 2024: South Indian Bank and Northern Arc Capital have established a strategic partnership to streamline loan processes and expand financial offerings, leveraging their respective strengths for mutual growth. This collaboration, solidified through an MOU, aims to seize market opportunities and drive innovation in co-lending activities, utilizing Northern Arc's nPOS platform.
January 2024: Karnataka Bank and Northern Arc Capital Limited have joined forces to provide customer-centric financial solutions through Northern Arc’s nPOS technology platform, fostering co-origination and co-lending activities. The partnership, emphasized by Shri Srikrishnan H and Ashish Mehrotra, underscores a commitment to digital lending, risk management, and financial inclusion.
Latest Funding
On April 22, 2024 – Northern Arc announced an investment from the International Finance Corporation, a member of the World Bank Group.
- Investment Amount - $80Mn | Equal split of equity and debt, each contributing $40 million
- Security type - 84,91,048 CCPS | Face value - ₹20 | Share price - ₹391 | Amount - INR 331 Crs
On 16th April 2024, a private placement offer to RJ Corp
- Security type - 12,78,772 CCPS | Face value - ₹20 | Share price - ₹391 | Amount - INR 50 Crs
Financial Charts of Northern Arc Unlisted Shares
Balance Sheet of Northern Arc Unlisted Shares
Profit and Loss of Northern Arc Unlisted Shares
Ancillary of Northern Arc Unlisted Shares
Ratio Analysis
Peers
Industry Benchmarking
Segment Revenue
Subsidaries
Security Allotment
Corporate Governance
Team Management Details
FAQs of Northern Arc Unlisted Shares
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How to buy Northern Arc Capital Ltd.?
Below are three ways through which you can purchase Northern Arc Capital Ltd.:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to buy Northern Arc Capital Ltd., please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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How to sell Northern Arc Capital Ltd.?
Below are three ways through which you can sell Northern Arc Capital Ltd.:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to sell Northern Arc Capital Ltd., please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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What is the price of Northern Arc Capital Ltd.?
We provide a two way quote on all the shares we deal in. Your buy price for Northern Arc Capital Ltd. is ₹340 and your sell price for Northern Arc Capital Ltd. is ₹300. The price is based on our estimates and market conditions.
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What is the lock-in period of Northern Arc Capital Ltd.?
The lock-in period for Northern Arc Capital Ltd. varies depending on the category of investors:
- For retail Investors, HNIs, or Body Corporates, the lock-in period is 6 months from the date of the listing of Northern Arc Capital Ltd.
- For Venture Capital Funds or Foreign Venture Capital Investors, there is a lock-in period of 6 months from the date of acquisition of Northern Arc Capital Ltd.
- For AIF-II (Alternative Investment Funds - Category II), there is no lock-in period
August 2021 saw the introduction of this regulation by SEBI. The purpose of the regulation change, which lowered the lock-in period from a year to six months, was to incentivize additional investments in firms getting ready for initial public offerings, or IPOs. Since its introduction, a number of Portfolio Management Services (PMS) have advised their clients to purchase Pre-IPO shares in order to take advantage of the advantages associated with early-stage investments. This reduction in the lock-in period is considered as a significant step forward.
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How is the Northern Arc Capital Ltd. price calculated?
Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of Northern Arc Capital Ltd.. The price is also determined from the most recent funding round for Northern Arc Capital Ltd.. This provides us with a benchmark valuation, offering a clear indication of the company's current market value as perceived by investors and industry experts.
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What are the lot sizes of Northern Arc Capital Ltd.?
We can generally arrange lot sizes starting with an investment of INR 20,000. To confirm the lot sizes of Northern Arc Capital Ltd. with us kindly click here.
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What are the financials of Northern Arc Capital Ltd.?
The financials of Northern Arc Capital Ltd. which includes the P/L of Northern Arc Capital Ltd. and the Balance Sheet of Northern Arc Capital Ltd. is in the financials section (Click on link).
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Where can I find the annual report of Northern Arc Capital Ltd.?
The annual report of Northern Arc Capital Ltd. is available in the annual report section (Click on link).
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Is buying Northern Arc Capital Ltd. legal in India?
Yes, buying and selling unlisted shares in India is indeed 100% legal. This activity is regulated and governed under the guidelines provided by the Securities and Exchange Board of India (SEBI). Investors and traders must adhere to these regulations and guidelines to ensure compliance with legal and financial standards. It's important for participants in the unlisted share market to be aware of and understand these regulations to engage in transactions legally and securely.
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Short-term Capital Gain taxes to be paid on Northern Arc Capital Ltd.?
When you sell unlisted shares within a period of two years from the date of acquisition, any profit earned from the sale is classified as Short-term Capital Gain (STCG). This gain is then added to your total income for that financial year. The tax on this short-term capital gain is calculated based on your applicable individual income tax slab rates. Therefore, the rate at which you will pay tax on the STCG from unlisted shares depends on your total income, including this gain, and the tax slab it falls under as per the prevailing income tax laws in India. It's important for investors to consider these tax implications when engaging in transactions involving unlisted shares.
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Long-term Capital Gain taxes to be paid on Northern Arc Capital Ltd. and how are They Taxed?
Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:
- Tax Rate: LTCG on unlisted shares is taxed at a rate of 20%.
- Indexation Benefit: This is a significant advantage for investors. Indexation allows for adjusting the purchase price of the shares for inflation, which can reduce the taxable gain.
- Importance for Investors: Understanding LTCG is crucial, especially for High Net-worth Individuals (HNIs) and retail investors, as it impacts their investment strategy and tax planning. Knowing these details helps in making informed investment decisions.
- Calculation: LTCG is calculated by subtracting the indexed cost of acquisition (the purchase price adjusted for inflation) from the sale price of the shares. The profit thus calculated is subject to a 20% tax.
- Applicability: LTCG tax is applicable to profits from the sale of unlisted shares held for more than two years.
- Relevance: This tax is particularly relevant to investors in the unlisted share market, including those considering selling their holdings after a period of more than two years.
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Applicability of Taxes on Northern Arc Capital Ltd. once it is listed?
When shares initially bought in the unlisted market become listed, the taxation rules change significantly if these shares are sold through a stock exchange. Here's what investors need to know:
Transition to Listed Market Tax Rates: Once unlisted shares are listed on the stock exchange and subsequently sold, the tax rates applicable to listed securities come into effect. This shift means that the favourable tax treatments for listed shares, as per the prevailing tax laws, will apply.
Taxation Based on Holding Period: The crucial factor in determining the type of capital gains tax (Long-term or Short-term) is the holding period of the shares. Importantly, this period is calculated from the original purchase date when the shares were unlisted.
Long-term vs. Short-term Capital Gains: If the shares are sold after being held for more than one year from the date of purchase (including the period when they were unlisted), they are subject to Long-term Capital Gains (LTCG) tax.
Conversely, if sold within one-year, Short-term Capital Gains (STCG) tax rates apply.
Significance for Investors: This information is vital for investors in the unlisted market, as it impacts their tax planning and decision-making process. Understanding these nuances ensures that investors can strategically plan the sale of their shares post-listing to optimize tax implications.
Advice for Investors: It's advisable for investors to keep a record of their purchase dates and monitor the listing dates closely. Additionally, staying updated with the latest tax regulations or consulting with a financial advisor is recommended for accurate tax calculations and compliance. -
How does Altius Investech source Northern Arc Capital Ltd.?
At Altius Investech, our approach to sourcing Boat Unlisted Share (Imagine Marketing) involves a strategic and direct method. Primarily, we acquire these shares from the below key groups:
Employees of the Company: Employee stock option plans (ESOPs) or other compensation packages frequently include shares for firm employees. For a various reasons, such as including portfolio diversification or financial considerations, some of these employees may eventually choose to sell their shares. We engage with these employees, providing them a platform to sell their shares.
Initial Investors: These are the angel or early-stage investors who provided capital to the business in its early stages. These original investors may look to sell all or part of their ownership position in the company as it develops and flourishes. This might be done for various reasons such as in order to maximise their investment, reallocate resources, or make other calculated financial decisions.
Funding rounds and VC funds: Altius Investech sources the shares from private placement rounds in which private companies seek to obtain capital from the market. Through our platform, venture capital funds can liquidate their shares and we receive the inventory from them when they decide to sell a portion of their ownership through block trades.
By establishing connections with these groups, Altius Investech guarantees our clients a steady and dependable supply of Boat Unlisted Share (Imagine Marketing). This process not only makes it easier for employees and initial investors in liquidating their assets, but it also gives our clients access to shares that aren't often found on the open market. Our platform effectively facilitates a win-win situation for both buyers and sellers. -
How to trust Altius Investech before buying Northern Arc Capital Ltd. from its platform?
Altius Investech stands at being India's fastest growing and leading marketplace for buying and selling unlisted shares. We believe in enabling access to alternative sources of investments at lower entry barriers to private equity investments.
With more than 25 years of experience, Altius Investech has carved a niche in the financial market by serving more than 8000 clients. The incredible journey is further highlighted by the vast number of transactions that Altius Investech has facilitated transactions that have already exceeded 300 crores.
For investors Altius Investech curates investment opportunities in companies at reasonable valuations which are on the verge of an IPO leading to massive value unlocking. Investments are backed by thorough research and sound investment thesis, with a time bound exit plan.
For ESOP Shareholder and existing Investors, we assist them to liquidate their shares even if they are not publicly traded by creating a platform where we find the right buyers and sellers for the best prices.
Altius Investech have been featured in top media news outlets like Economic Times, Financial Express, Money control. Check out about us on these - leading publications (Click on link) Our journey over these years has not just been about numbers; it's been about building trust and reliability.
We at Altius Investech are dedicated to upholding the greatest levels of ethics and transparency, making sure that your investment experience is not only profitable but also safe and reliable.
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