Northern Arc Capital Limited, founded in 2009, is a financial services company that focuses on providing retail loans to underserved households and businesses throughout India. This initiative aims to bridge the gap in financial inclusion by targeting segments of the population that traditional financial institutions often overlook.
The company's initial public offering (IPO) is poised to close for subscription on September 19, 2024. The IPO was launched on September 16, 2024, with the goal of raising a substantial Rs 777 crore. This amount comprises a fresh issue of 1.9 crore shares worth Rs 500 crore and an offer for sale of 1.05 crore shares valued at Rs 277 crore.
The price band for the IPO is set between Rs 249 and Rs 263 per share. This pricing range is intended to attract a broad spectrum of investors while reflecting the company's value and growth potential. Northern Arc Capital’s IPO has seen an overwhelming response from the investment community, evidenced by the high subscription rates.
As of September 19, 2024, by 4:54 PM, the subscription rates have been remarkable. The retail portion of the IPO has been subscribed 31.57 times, indicating strong interest from individual investors. The Qualified Institutional Buyers (QIB) category, which includes large institutional investors, has been subscribed an impressive 242.73 times. Meanwhile, the Non-Institutional Investors (NII) category has been subscribed 147.37 times, demonstrating broad-based enthusiasm for the offering.
The Grey Market Premium (GMP) for Northern Arc Capital's IPO, as reported at 3:29 PM on September 19, 2024, is Rs 155. With the upper end of the price band at Rs 263, this premium suggests that the estimated listing price of the shares could be around Rs 418. This projection implies an expected gain of approximately 58.94% for investors when the shares start trading.
The allotment process for the IPO is expected to be completed on September 20, 2024. Following this, the shares of Northern Arc Capital are slated for listing on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The tentative date for the official listing of the shares is September 24, 2024.
This IPO marks a significant milestone for Northern Arc Capital as it seeks to enhance its capital base and broaden its reach in the financial services sector. The strong investor response and substantial GMP reflect positive market sentiment and confidence in the company's future prospects.
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