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Northern Arc Capital Ltd is a prominent financial services entity in India that specializes in providing credit solutions to underserved segments of the economy. Founded in 1989, the company has evolved into a significant player in the financial services landscape. As of October 11, 2024, the Northern Arc Capital share price on the National Stock Exchange (NSE) stands at 283.80 INR. This detailed article aims to shed light on Northern Arc Capital’s financial trajectory, share price forecasts, growth potential for the years 2024 to 2030, and the factors influencing its market performance.
Northern Arc Capital IPO Overview
Northern Arc Capital’s Initial Public Offering (IPO) marked a pivotal moment in its corporate history. The IPO was launched with an overall issue size of ₹777 crore. This comprised a fresh issue of 1.9 crore shares valued at ₹500 crore, alongside an offer for sale of 1.05 crore shares, summing up to ₹277 crore. The bidding for the IPO opened on September 16, 2024, and concluded on September 19, 2024. The allotment of shares was finalized on September 20, 2024, following which the shares were listed on both the Bombay Stock Exchange (BSE) and the NSE on September 24, 2024.
The price band for the IPO was set between ₹249 to ₹263 per share. The minimum application lot size for participation was fixed at 57 shares, thereby necessitating a minimum investment of ₹14,991 for retail investors. For small Non-Institutional Investors (sNII), the minimum investment was established at 14 lots (798 shares), which totaled ₹209,874, while institutional investors (bNII) were required to invest a minimum of ₹1,004,397 by purchasing 67 lots (3,819 shares).
| Parameter | Details |
|---|---|
| Minimum order quantity | 57 shares |
| Open date | September 16, 2024 |
| Close date | September 19, 2024 |
| Listing date | September 24, 2024 |
| Listed on | BSE, NSE |
| Issue price | ₹249–₹263 per share |
| Issue size | ₹777 crore |
| Face value | ₹10 |
| Total shares offered | 29,543,726 |
| Offered to public | 10,133,498 |
| Minimum investment | ₹14,991 |
| Registrar | Kfin Technologies Limited |
Northern Arc Capital: Company Overview
- Open Price: ₹287.55
- High Price: ₹292.20
- Previous Close: ₹289.80
- Low Price: ₹282.55
- Volume: 336,239
- Upper Circuit Limit: ₹388.05
- Lower Circuit Limit: ₹258.75
- VWAP (Volume Weighted Average Price): ₹286.97
- P/E Ratio: 14.85
- 52-Week High: ₹350.00
- 52-Week Low: ₹269.50
- Market Capitalization: ₹4.58K Cr
- Face Value: ₹10
Northern Arc Capital Share Price Performance
Northern Arc Capital Share Price Target Forecast (2024 to 2030)
| Year | Target Share Price (₹) |
|---|---|
| 2024 | ₹370 |
| 2025 | ₹415 |
| 2026 | ₹450 |
| 2027 | ₹520 |
| 2028 | ₹590 |
| 2029 | ₹650 |
| 2030 | ₹700 |
Detailed Share Price Target Analysis
2024 Price Target
For 2024, the expected target share price for Northern Arc Capital is ₹370. Given the company’s consistent growth in market capitalization and operational turnover, this projection reflects a robust financial outlook and increasing investor confidence.
2025 Price Target
Looking towards 2025, the anticipated target share price rises to ₹415. The growth can be attributed to Northern Arc Capital’s solid business fundamentals and effective marketing strategies that foster public trust and investment.
2026 and Beyond
As we project into 2026, the target share price is estimated at ₹450, reflecting the company’s ability to adapt to market changes and enhance its financial performance continually. By 2030, the target escalates to ₹700, with expectations for Northern Arc Capital to solidify its position in the financial market through strategic partnerships, technology utilization, and expansion initiatives.
Shareholding Pattern Analysis
| Category | Percentage of Shares |
|---|---|
| Foreign Institutional Investors (FII) | 5.2% |
| Domestic Institutional Investors (DII) | 26.5% |
| Public Shareholders | 66.9% |
| Others | 1.4% |
Northern Arc Capital Financial Performance
| Category | Value (in Millions) |
|---|---|
| Revenue | 2,140M |
| Operating Expense | 304.09M |
| Net Income | 820.64M |
| Net Profit Margin | 38.40% |
| Effective Tax Rate | 24.38% |
*All financial data is as of March 2024, illustrating Northern Arc Capital’s solid performance within the industry.
FAQs: Northern Arc Capital
Q1: What is the business model of Northern Arc Capital?
Northern Arc Capital operates primarily as a non-banking financial company (NBFC) focusing on providing capital to underserved sectors, including small businesses, microfinance institutions, and retail lending.
Q2: How has Northern Arc Capital performed post-IPO?
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