Northern Arc Capital IPO Opens for Subscription on September 16

Retail loan provider Northern Arc Capital has launched its Initial Public Offering (IPO) on Monday, September 16, and the subscription period will remain open until Thursday, September 19. The IPO aims to raise Rs.777 crore, which includes a fresh issue of Rs.500 crore and an Offer for Sale (OFS) of Rs.277 crore.

Pre-IPO Fundraising from Anchor Investors

Prior to the IPO, Northern Arc Capital raised Rs.229 crore from anchor investors. The company allocated 87.02 lakh shares at Rs.263 per share to 15 major funds, including SBI General Insurance Company, SBI Life Insurance Company, Reliance General Insurance, Kotak Mahindra Life Insurance, Goldman Sachs (Singapore) Pte, Societe Generale, and Quant Mutual Fund.

Northern Arc Capital IPO Subscription Status

As of 4 PM on the first day of subscription (Monday), Northern Arc Capital’s IPO had been subscribed 2.47 times overall, according to BSE data. The retail investor portion was subscribed 3.49 times, while non-institutional investors subscribed 3.51 times. The Qualified Institutional Buyer (QIB) segment had a lower subscription rate of 0.01 times by that point.

Key Details of Northern Arc Capital IPO

Here are the 10 important points about the Northern Arc Capital IPO:

Grey Market Premium (GMP):
The current Grey Market Premium (GMP) for Northern Arc Capital is Rs.165, indicating strong investor confidence. Based on this GMP, the shares are expected to list at a price of Rs.428, reflecting a 62.74% premium.

Price Band:
The IPO price band is set between Rs.249 and Rs.263 per share.

Subscription Dates:
The IPO is open for subscription from September 16 to September 19.

IPO Size
The total IPO size is Rs.777 crore, with Rs.500 crore raised through a fresh issue of 1.9 crore shares and Rs.277 crore through an OFS of 1.05 crore shares.

Lot Size
Investors can apply for a minimum lot of 57 shares. At the upper price band of Rs.263, the minimum investment required is Rs.14,991.

Allotment Date
The final share allotment is expected on Friday, September 20. Applicants will have shares credited to their demat accounts by Monday, September 23. Refunds for those not allotted shares will also be processed on the same day.

Registrar
Kfin Technologies Limited has been appointed as the official registrar for this IPO.

Listing Date
Northern Arc Capital’s shares are scheduled to be listed on the BSE and NSE on Tuesday, September 24.

Use of Funds
The funds raised from the fresh issue will be utilized to address the company's future capital requirements, primarily for onward lending.

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Company Overview
Northern Arc Capital offers retail loans to underserved households and businesses in India, operating through three main channels: lending, placements, and fund management. The company’s profits have grown from Rs.181.94 crore in FY22 to Rs.317.69 crore in FY24. This IPO provides a valuable opportunity for investors looking to tap into the expanding non-banking financial sector, with promising growth potential for Northern Arc Capital.