Northern Arc Capital IPO: Investors Show Strong Interest as Subscription Rates Soar
Northern Arc Capital’s initial public offering (IPO) is generating significant buzz in the market. The IPO opened for subscription on September 16 and is set to close on September 19. With a price band set between Rs 249 and Rs 263 per share, investors are eagerly participating, leading to an impressive oversubscription rate.
Main Points
Northern Arc Capital IPO Current Subscription Status
The Northern Arc Capital IPO has seen remarkable interest from investors. On the second day of bidding, the issue was subscribed 9.98 times, with a staggering 21.43 crore shares bid against 2.14 crore shares available for purchase. This enthusiastic response is largely driven by retail investors, who have shown robust participation, subscribing 6.73 times their allotted quota. Non-institutional investors have also been active, with their subscription rate reaching 9 times.
Northern Arc Capital IPO Grey Market Premium (GMP)
The grey market premium for Northern Arc Capital shares has been on the rise, currently standing at Rs 178, indicating a potential listing gain of around 67% from the upper end of the issue price. This premium reflects strong investor sentiment and anticipation regarding the company’s performance post-listing.
Northern Arc Capital IPO Financial Overview
Northern Arc Capital aims to raise approximately Rs 776 crore through this IPO, which includes a fresh issue of equity shares worth Rs 500 crore and an offer for sale amounting to around Rs 276 crore. The funds raised will primarily be utilized to support future lending initiatives across various sectors, including microfinance and MSME financing.
Company Background
Founded with the mission to cater to the diverse credit needs of underserved households and businesses in India, Northern Arc Capital has facilitated over Rs 1.73 trillion in financing since its inception. The company operates a diversified business model that spans multiple sectors and borrower categories, ensuring a broad reach across India’s credit landscape.
Northern Arc Capital IPO Analyst Recommendations
Market analysts are optimistic about Northern Arc Capital’s prospects. Several brokerage firms have issued “subscribe” ratings for the IPO, citing the company’s strong fundamentals and growth potential. For instance:
- Anand Rathi highlighted that Northern Arc’s diversified funding sources and improved credit ratings position it well for sustainable growth despite operational challenges.
- Nirmal Bang Securities noted that the company’s asset quality is impressive, with low gross non-performing assets (GNPA) of just 0.45%, making it an attractive investment opportunity.
Key Dates and Details
- IPO Opening Date: September 16, 2024
- IPO Closing Date: September 19, 2024
- Allotment Date: Expected on September 20, 2024
- Listing Date: Anticipated on September 24, 2024.
Investors can apply for a minimum of 57 shares, making it accessible for retail participants looking to invest in this promising financial services platform.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
