Northern Arc Capital makes stellar debut, lists at 33% premium on BSE, NSE

Northern Arc Capital IPO listing today: Shares of Northern Arc Capital made a strong debut on bourses amidst the favourable market sentiments on Tuesday. Northern Arc Capital shares listed at Rs 351 on the BSE, reflecting a premium of 33.40 per cent against the issue price of Rs 263.

On the NSE, the Northern Arc Capital shares listed at a premium of 33.07 per cent at Rs 350, against the IPO issue price.

Thus, with this strong debut, Northern Arc Capital yielded a return of over 33 per cent per share for the shareholders who were allotted the company’s shares in the IPO process.

Northern Arc Capital's listing, however, is below the grey market trends, as the company's shares were commanding a grey market premium (GMP) of Rs 131 ahead of its market debut.

Northern Arc Capital offered 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 through the IPO. The public issue, which was available at a price band of Rs 249-263 per share with a lot size of 57 shares, received an overwhelming response from investors, getting subscribed 110.91 times by the final day of subscription. The highest bid for the Northern Arc Capital IPO came from the Qualified Institutional Buyers (QIBs) at 240.79 times, whereas Non-Institutional Investors subscribed 142.41 times, and Retail Individual Investors (RIIs) 31.08 times, as per the NSE data.

The subscription window to bid for Northern Arc Capital IPO remained open from Monday, September 16, 2024, to Thursday, September 19, 2024. The company garnered favourable reviews from Deven Choksey Research and Mehta Equities for its IPO.

Northern Arc Capital said that it intends to utilise the net proceeds to meet future capital requirements toward onward lending.

Northern Arc Capital, founded in 2009, provides retail loans to underserved Indian households and businesses. The company’s diversified business model spans various sectors, products, and geographies, facilitating over Rs 1.73 trillion in financing to 101.82 million people as of March 31, 2024. Northern Arc is registered with the Reserve Bank of India as a Non-Banking Finance Company and has been operating for the last 14 years.