Northern ARC pops 4% as RBI grants approval for undertaking factoring biz

Northern ARC share price: Northern ARC share price rose as much as 3.97 per cent to hit an intraday high of ₹241.70 per share. 

 

However, by 12:00 PM, Northern ARC shares were off highs, and slipped into negative territory, down 1.14 per cent at 229.80 per share. In comparison, BSE Sensex was trading 0.44 per cent lower at 82,148.95 levels.  CATCH STOCK MARKET LATEST UPDATES TODAY LIVE

 

Why did Northern ARC share price rise in trade today?

 

Northern ARC share price jumped in trade after the company announced that the Reserve Bank of India (RBI) has granted approval to the company for undertaking factoring business.

 

 

In an exchange filing, Northern ARC said, “We wish to inform you that the Company has received approval from RBI to commence and carry on the factoring business.”

 

The said approval permits the company to commence and carry-on factoring business,  Northern ARC highlighted.   ALSO READ | Tilaknagar, Radico gain upto 11%; why are these liquor stocks rising today?

 

What is a factoring business?

 

In the factoring business, a non-banking financial company (NBFC) offers immediate funding to businesses by purchasing their accounts receivable (unpaid invoices) at a discounted rate. This enables the business to access cash quickly, helping to ease cash flow constraints. The NBFC then assumes the responsibility of collecting payments from the customers, while the business receives a reduced upfront amount.

 

Northern ARC Q4 results

 

Northern ARC Capital reported a 57.48 per cent year-on-year (Y-o-Y) drop in net profit to ₹37.76 crore for the quarter ended March 2025 (Q4FY25), compared to ₹88.81 crore in the same quarter last year (Q4FY24). However, revenue for the quarter rose 6.84 per cent to ₹602.52 crore from ₹563.93 crore a year ago.

 

For the full financial year ended March 2025, net profit dipped 1.23 per cent to ₹304.55 crore, down from ₹308.33 crore in the previous year.   ALSO READ | Shakti Pumps gains on ₹114.6 crore order win from Maharashtra Energy Dept

 

About Northern ARC

 

Northern Arc Capital Limited (formerly IFMR Capital Finance Limited) is a Non-Banking Financial Company (NBFC) that facilitates access to debt for under-served individuals and businesses. 

 

With over 14 years of experience, the company connects borrowers from sectors like microfinance, affordable housing, agriculture, and commercial vehicle finance with mainstream debt investors. 

 

The company operates as a diversified financial services platform with a strong focus on underserved markets. It offers a wide range of financing solutions, including MSME, microfinance, consumer, vehicle, and agricultural loans. Northern Arc follows a partner-driven model, working closely with microfinance institutions (MFIs) and other NBFCs to extend capital to micro-entrepreneurs and financially excluded borrowers, helping bridge the credit gap in India’s informal economy.