Arkade Developers IPO vs. Northern Arc Capital IPO: Expert Opinions and Key Insights

The third week of September has brought a surge of activity in the Indian stock market, with about nine initial public offerings (IPOs) hitting the market. This momentum is expected to continue, reflecting the growing interest of investors in the Indian IPO market. Over the past few months, public offerings have gained massive attention, showing strong investor confidence. Notably, in August, IPO fundraising hit a 27-month high, with 10 companies raising approximately ₹17,047 crore, marking the most active period since May 2022.

Key IPOs This Week

This week, several small and medium-sized enterprises (SME) IPOs are set to go live, along with three mainboard IPOs. Among the big ones, Arkade Developers IPO and Northern Arc Capital IPO will run from Monday, September 16, to Thursday, September 19. Additionally, the Western Carriers (India) IPO, which began on Friday, September 13, will close on Thursday, as Wednesday is a bank holiday.

Market Experts' Insights

When talking to market experts, it's clear that Northern Arc Capital IPO stands out as the most preferred choice this week. Market expert Mohit Gulati shared his views on the other offerings as well. According to him, Arkade Developers is entering the market at a time when real estate demand is leveling off, similar to the conditions in 2007. Although the IPO may perform well on its listing day, Gulati believes the real estate market will slow down in the coming year, making it difficult for Arkade to exceed expectations.

On Western Carriers (India), Gulati said that despite the company’s low-profit margins, they are well-positioned to succeed. He views this IPO as a solid offering and recommends investors to "BUY."

Northern Arc Capital: The Top Pick

Gulati’s top recommendation this week is Northern Arc Capital. The company focuses on providing access to capital for the lower end of the Indian market, which is highly lucrative but often underserved.

Also read: Northern Arc Capital IPO Opens for Subscription on September 16

Gulati believes Northern Arc has the potential to significantly expand its loan portfolio in the next 4 to 7 years. With attractive valuations and the possibility of keeping non-performing assets (NPAs) low, Gulati sees this IPO as a potential "multi-bagger" worth holding onto long-term.