Northern Arc Capital Ltd

Northern Arc Capital Ltd Technicals

Northern Arc Capital Ltd Financials

Northern Arc Capital Ltd Shareholding Pattern

About Northern Arc Capital Ltd

Northern ARC Capital Limited, formerly known ‘Highland Leasing & Finance Private Limited’ was incorporated on March 9, 1989 as a Private Limited Company by the Registrar of Companies at Chennai. The name of the Company was changed to ‘IFMR Capital Finance Private Limited' on June 19, 2009. Subsequently, it converted into a Public Company and the name was changed to IFMR Capital Finance Limited' on December 12, 2017 and again to Northern Arc Capital Limited' via fresh Certificate of Incorporation dated February 20, 2018. The Company is principally engaged in lending to provide liquidity and develop access to debtcapital markets for institutions and providing loans for personal, business, education and mortgage purposes to individuals. The Companystarted the businessin 1990 by partnering with Microfinance Institutions (MFIs), and since then, it has expanded into sectors such as MSME, Micro Finance, Consumer Finance, Vehicle Finance, Affordable Housing, Agriculture and Climate Finance. This diversification enabled the Company to build a well-balanced lending portfolio, strengthen portfolio resilience, and served to the evolving credit needs of the underserved segments across India. The Company evolved into one of India’s most diversified technology-led financial services platforms. Presently, the company operates through 432 branches across 680+ districts in India with 368 Originator Partners,57 Digital Partners, 1,500+ Investor Partners, and 29.55 lakh Direct Cus ...tomersenabling credit to nearly 140 million borrowers. The products include Loans, NCDs, CPs, securitization and sale of assets. In addition, it provides partial guarantees for borrowings of the Originator Partners and third-party credit for securitization of receivables with other lenders. Through the expansion, it accessed to reliable debt capital, onshore and offshore for its Originator Partners. Northern Arc Investment Managers (wholly owned subsidiary) currently manages 8 AIFs and 2 PMS strategies with investments more than 250 portfolio companies. The Company also plays a pivotal role in securitisation market and access to capital for the onboarding partners. It supports the partners through funding structures and credit requirements which includes balance sheet lending and investments in debt securities issued by Originator Partners to finance their retail lending activities. The Company has pioneeredwith the participation of reputeddevelopment finance institutions and impact investors including the International Finance Corporation (IFC), Affirma Capital, Eight Roads, SMBC and LeapFrog Investments. The Company operate two business models comprising of Direct-to-Customer Lending and Credit Solutions. Under the Direct-to-Customer Lending business, the Company lends directly to borrowers across MSMEs, consumer and rural finance through their physical and digital distribution network. They own the complete customer relationship from underwriting, disbursement to servicing, while leveraging the same risk, technology and data capabilities that they have developed over years in the Credit Solutions business. Under the Credit Solutions business, it partners with financial institutions serving underserved customer segments. Depending on the institution's needs, they deploy capital from their own balance sheet, mobilize funding from external investors, or channel capital through funds managed by them. This enables their partners to access diversified sources of capital through a single platform rather than relying on one funding avenue. With the help of Technology-enabled business platforms, the Company has leveraged the proprietary, platform-led technology stack to enable scalable, efficient, and risk managed growth across the lending and capital market ecosystem. The Company’s technology architecture is anchored on integrated platforms spanning distribution, origination, and co-lending execution, driving end-to-end digitisation of credit enablement, monitoring, and servicing workflows. In 2009, Company initially ventured into first microfinance securitization transaction in new asset classes such as cash loans, consumer durables and trade receivables to fund the needs of existingand new original partners. In 2010, the Company arranged and structured India's first pooled multi-originator securitization transaction (MOSEC) which enabled funding to four Originator Partners operating in the microfinance sector. It completed first placement transaction of a microfinance securitization with private individual investor, entered the MSME finance sector in 2011. In 2013, it ventured into the vehicle finance and affordable housing finance sectors and completed India's first listed securitization of microfinance loans, which enabled funding to eight Originator Partners operating in the microfinance sector. The Company started operation in fund management business, through subsidiary Northern Arc Investment Managers Private Limited (NAIM) in 2014. In 2016, it commenced retail business, expanded platform with commencement of business with mid- marketcompanies. In 2018, the Company undertook first vehicle loan backed securitization transaction which enabled funding to an Originator Partner operating in the vehicle finance sector. In 2019, the Company underwent reorganization through Scheme and became a professionally managed company, got into the consumer finance sector; completed equity raise from IIFL Funds and strategic investment by SMBC, a global bank; structured and arranged the country's first issuance of dual-recourse debentures which enabled funding operating in the vehicle finance sector. Nimbus 1.0 was launched in September 2018. The Company disbursed microfinance loans under the retail business through Nimbus; arranged and structured India's first securitization transaction involving trade receivables which enabled funding to 10 vendors in 2020. Company launched 'Altifi', in 2021 a digital investment platform providing retail investors, HNIs and small corporates with access to fixed-income products such as bonds, securitized assets and AIF units which were traditionally limited to institutional investors.It has currently 104K+ users having access of 50+listed bonds offering commission-free with Rs. 10,000 minimum investments. It provides fixed monthly returns across a wide credit spectrum from AAA to BBB+ rated issuers and is positioned to benefit from increasing investor preference for fixed-income and alternative investment products. The Company launched supply chain financing, education loan and MSME loan against property business in 2022. It acquired the identified assets and liabilities of S.M.I.L.E. Microfinance Limited and 144 branches in April, 2022. In 2023, the Company launched the Emerging Corporate Bond Fund, the 10th fund managed by Northern Arc Investments, which focused on serving credit requirements of emerging corporates thus extending their experience of underwriting non-financial institutions corporates to the investors in the fund. NuScore got launched in January 2023. It raised funds from large banks in the country like SBI, BoB, Union Bank, Indian Bank, HDFC, Axis, Kotak, IDFC Bank, etc. The Company came up with an Initial Public Offering of 29,597,646 Equity Shares by raising funds from public aggregating to Rs 777 Crore, comprising a Fresh Issue of 19,065,326 Equity Shares aggregating to Rs 500 Crore and Offer for Sale of 10,532,320 Equity Shares aggregating to Rs 277 Crore on 19th September,2024. In 2024, the Company raised equity fund from IFC, RJ Corp Limited and Varun Jaipuria. It obtained debt funding of USD 75 million from an Entrepreneurial Development Bank. In FY25 the Companyadded 57 new branches to accelerate D2C expansion. The Company's AUM grew by 16.4% y-o-y, rising from Rs 11710 Crore in March 2024 to Rs 13634 Crore in March 2025and to Rs 16,594 crore in March 2026. During the year 2026, the Company strengthened its credit intermediation business by expanding the reach into newer investor segments including Alternative Investments Funds ( AIFs), corporate treasuries, cooperative banks, small finance banks (SFBs) & provident funds. It has further scaled up the direct-to-customer (D2C) lending activities and has added the affordable housing business during the year. The Funds Business has the AUM of Rs Rs. 2988 crore with 16,500+ Crore cumulative fund deployment and 14.57% XIRR across exited fundsand a well-balanced sector and investor portfolio.

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