Northern Arc Capital is scheduled to finalise share allotment basis on Friday, September 20. Bidders will get the messages, alerts or emails for debit of their funds or revocations of their IPO mandate either over the weekend or latest by Monday, September 23. The shadow lender had received a historic response from the investors during the bidding process.
The IPO of Northern Arc Capital was open for bidding between September 16 and September 19. The company had offered its shares in the fixed price band of Rs 249-263 per share with a lot size of 57 shares. The company raised about Rs 777 crore via its primary offering, which included a fresh share sale of Rs 500 crore and an offer for sale of up to 1.05 crore shares.
The issue saw a solid bidding and was overall subscribed a solid 110.91 times. The quota for qualified institutional bidders (QIBs) was booked a stellar 240.79 times The quota for non-institutional investors was subscribed 142.41 times. The portion reserved for employees and retail investors saw bidding for 31.08 times and 7.33 times during the bidding process.
Grey market premium (GMP) of Northern Arc Capital has seen a correction after strong bidding for the issue amid the volatility. Last heard, the company was commanding a premium of Rs 128-130 per share, suggesting a listing pop of around 50 per cent for the investors. However, it was around Rs 200 apiece, when the issue had opened for the bidding.
Chennai-based Northern Arc Capital was founded in 2009 and offers retail loans to underserved households and businesses in India. Its business model is diversified across different offerings, sectors, products, geographies, and borrower categories. It has facilitated over Rs. 1.73 lakh crore worth of financing, reaching out to over 10.18 crore people across India, as of March 31, 2024.
Brokerages were mostly positive on the issue suggesting investors to subscribe to it for a long term citing rising demand for loans, strong market presence, technological advancement, diversified sources for the business. However, negative cash flows, cost of funds and dependence on selected set of clients are the key concerns for the company.
ICICI Securities, Axis Bank and Citigroup Global Markets India are the book running lead managers of the Northern Arc Capital IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE, with September 24, Tuesday as the tentative date of listing.
Investors, who had bid for the issue of Northern Arc Capital, can check the allotment status on the Bombay Stock Exchange (BSE) website:
1) Visit https://www.bseindia.com/investors/appli_check.aspx
2) Under the issue type, click Equity
3) Under the issue name, select Northern Arc Capital Ltd in the dropbox
4) Write the application number
5) Add the PAN card ID
6) Click on 'I am not a Robot' and hit submit
Investors can also check the allotment status on the online portal of KFin Technologies Limited (https://kosmic.kfintech.com/ipostatus), the registrar to the issue.
The registrar is a Sebi-registered entity, qualified to act as such and which electronically processes all applications and carries out the allotment process, as per the prospectus. The registrar is responsible for complying with the timelines for updating the electronic credit of shares to successful applicants, dispatching and uploading refunds, and attending to all investor-related queries. 1) Go to the web portal of KFin Technologies Limited
2) Select the IPO in dropbox whose name will be populated only if the allotment is finalized
3) You may be required to select either one of the three modes: Application number, Demat Account number, or PAN ID
4) In application type, select between ASBA and non-ASBA
5) Enter the details of the mode you selected in Step 2
6) For security purposes, fill the captcha accurately
7) Hit submit.