Northern Arc Capital IPO Day 2: Subscription soars, GMP up 67%; bid or not?

The grey market premium of Northern Arc Capital continues to move northward as the company's shares are quoted commanding a GMP of 68 percent from the upper end of the issue price

Northern Arc Capital IPO: The initial public offering of Northern Arc Capital has been witnessing overwhelming responses from the investors, as the issue has received bids for a whopping 11,95,44,003 shares, against 2,08,68,467 shares offered, resulting in an oversubscription of 5.73 times so far, riding on the back of the retail investors who placed the bid for 8.51.

Available at a price band of Rs 249-263, the Northern Arc Capital IPO has received 6.73 times subscription from the Non-Institutional Investors, while the quota of Qualified Institutional Buyers (QIBs) received a subscription of 0.03 times, till around 10:27 AM on Tuesday, as per the NSE data.

Meanwhile, the grey market premium of Northern Arc Capital continues to move northward as the company’s shares were quoted commanding a GMP of Rs 178, nearly 68 per cent higher from the upper end of the issue price of 263, underscoring the investors’ enthusiasm for the public issue.

In addition to that, the public issue of Northern Arc Capital has received a Subscribe rating from Deven Choksey Research. READ MORE

With the IPO, it is offering a fresh issue of 19,011,407 shares and an offer for sale of 10,532,320 shares with a face value of Rs 10 apiece. The company proposes to utilize the net proceeds to meet future capital requirements toward onward lending. Kfin Technologies is the registrar for Northern Arc Capital IPO, while ICICI Securities, Axis Bank, and Citigroup Global Markets India are the book-running lead managers of the public issue.

Northern Arc Capital IPO closes on Thursday, September 19, 2024. Following the closure of the subscription window, the basis of allotment of Northern Arc Capital IPO shares is likely to be finalized on Friday, September 20, 2024, and subsequently, the company's shares will be credited into demat accounts on Monday, September 23, 2024.

The listing of Northern Arc Capital shares on the BSE and NSE is expected to take place on Tuesday, September 24, 2024.