Northern Arc Capital makes decent debut; over 13 lakh shares traded sor far

Shares of Northern Arc Capital were currently trading at Rs 327.90 on the BSE, which is at a 24.68% premium to its issue price of Rs 263.

The scrip was listed at Rs 351, representing a 33.46% premium to its issue price.

So far, the stock has hit a high of 351 and a low of 324.90. On the BSE, over 13.63 lakh shares of the company were traded in the counter so far.

The initial public offer (IPO) of Northern Arc Capital received bids for 2,38,22,43,807 shares as against 2,14,78,290 shares on offer. The issue was subscribed 110.91 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 240.79 times. The Non-Institutional Investors (NIIs) category was subscribed 142.41 times. The Retail Individual Investors (RIIs) category was subscribed 31.08 times.

The issue opened for bidding on 16 September 2024 and it closed on 19 September 2024. The price band of the IPO was fixed between Rs 249 to 263 per share.

The initial public offer (IPO) consisted of fresh issue to raise Rs 500 crore through issuance of 1.90 crore equity shares at the lower band of Rs 249 per share (face value Rs 10 per share) and 2.01 crore equity shares at the upper band of Rs 263 per share.

The issue included an offer for sale (OFS) of 1.05 equity shares for raising 262.55-277.00 crore from the investors Leap Frog Financial Inclusion India (II) 38,44,449 equity shares, Accion Africa-Asia Investment Company 12,63,965 equity share, Eight Roads Investment Mauritius II 17,46,950 equity shares, Dvara Trust 13,44,828 equity shares, 360 One Special Opportunities Fund 14,08,918 equity shares and Sumitomo Mitsui Banking Corporation 9,23,210 equity shares.

The net proceeds from the fresh issue will be used for augmenting the capital base to meet future capital requirements. The issue will bring the benefits of listing the equity shares on the stock exchanges, including enhancing brand image among existing and potential customers and creation of a public market for the equity shares in India.

Ahead of the IPO, Northern Arc Capital on 13 September 2024, raised Rs 228.86 crore from anchor investors. The board allotted 87.02 lakh shares at Rs 263 each to 15 anchor investors.

Northern Arc Capital is a diversified financial services platform catering to the diverse retail credit requirements of the under-served households and businesses in India. Over the last 15 years, the company has facilitated financing of over Rs 1.73 lakh crore touching 10.18 crore lives across India. The business model is diversified across offerings, sectors, products, geographies and borrower categories.

The firm reported a consolidated net profit of Rs 308.33crore and income from operations of Rs 1,712.11 crore for the twelve months ended on 31 March 2024.

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