Northern Arc IPO listing buzz: GMP resurges 55%; check likely listing price

Northern Arc Capital shares are poised for their market debut tomorrow. Here's what GMP trends indicate about the listing prospects

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Northern Arc Capital IPO GMP,  expected listing price: Following the allotment of Northern Arc Capital shares, investors await their market debut, which is expected to take place tomorrow, Tuesday, September 24, 2024. Meanwhile, the unlisted shares of Northern Arc Capital are trading at a premium of around Rs 144 against the IPO issue price of Rs 263, sources tracking grey market activities reveal. This translates to a strong grey market premium (GMP) of 54.75 per cent, hinting at substantial listing gains for investors.

The grey market premium of Northern Arc Capital shares has dropped by Rs 34 from Rs 178, recorded on September 16, when the issue opened for public subscription. However, Northern Arc Capital IPO today’s GMP is around Rs 16 higher than Rs 128, quoted on September 19, 2024, when the issue closed for subscription, reflecting an upward move.

That said, if today’s GMP is taken into consideration, Northern Arc Capital shares may list around Rs 407 apiece on the bourses, including BSE, and NSE, tomorrow. Thus, investors can expect listing gains of nearly 55 per cent  from the Northern Arc Capital shares listing.

Northern Arc Capital, which ended its subscription on Thursday, September 19, 2024, received an overwhelming response from investors, with the IPO getting subscribed 110.91 times by the final day of subscription. Northern Arc Capital IPO received the highest bid of 240.79 times from the Qualified Institutional Buyers (QIBs), whereas Non-Institutional Investors subscribed 142.41 times, and Retail Individual Investors (RIIs) 31.08 times, as per the NSE data.

The IPO comprised 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. It was available at a price band of Rs 249-263 per share with a lot size of 57 shares. Ahead of the public opening, Northern Arc Capital IPO announced that it had raised Rs 228.86 crore from anchor investors on bidding concluded on September 13, 2024.

Northern Arc Capital intends to utilise the Net Proceeds to meet its future capital requirements towards onward lending in its focused sectors, namely, MSME financing, MFI, consumer finance, vehicle finance, affordable housing finance, and agricultural finance, and to ensure compliance with the RBI regulations on capital adequacy for the Financial Year 2025.

Northern Arc is a diversified financial services platform set up primarily with the mission of catering to the diverse retail credit requirements of under-served households and businesses in India. 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.