Northern Arc Capital Ltd IPO Subscribed 8.40 Times on Day 2

Northern Arc Capital IPO opens for bidding on September 16, 2024 and closes on September 19, 2024.  It comprises a fresh issue of equity shares worth ₹500 crore and an offer for sale (OFS) of up to 10,532,320 equity shares by investor shareholders, totalling ₹277 crore. This brings the overall size of the IPO to ₹777 crore. 

The price band for the IPO is set between ₹249 and ₹263 per share, with each share having a face value of ₹10. The lot size for the IPO is 57 shares, with subsequent purchases in multiples of 57. The price range translates to 24.90 times to 26.30 times the face value of the shares.

Day Wise Subscription

On the second day of bidding, Northern Arc Capital IPO subscribed 8.40  times. The public issue subscribed 9.71 times in the retail category, 0.11 times in QIB, and 16.46 times in the NII category.

Grey Market Premium

Northern Arc Capital’s IPO grey market premium (GMP) is currently +178, meaning its shares are trading at ₹178 above the issue price in the grey market. Based on the highest IPO price and the current GMP, the expected listing price of Northern Arc Capital shares is ₹441, which is 67.68% higher than the issue price of ₹263. The grey market premium reflects investors’ willingness to pay more than the IPO price.

About Northern Arc Capital Limited

Northern Arc Capital, established in 1989, is a prominent non-bank financial company (NBFC) in India that focuses on providing credit to underserved families and businesses. They are widely recognised for their diverse financial services. Northern Arc supports various sectors, including microfinance, MSME financing, auto finance, consumer finance, and affordable housing finance.

Since its inception, the company has raised over ₹9,500 billion for its clients. Northern Arc offers 3 main services: financing for underserved individuals and businesses, syndication and structuring of financial deals, and fund management through its subsidiary, Northern Arc Investment Managers Pvt Ltd. Their work has impacted over 54 million people to date.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.