Northern Arc Capital IPO shares to list today; check GMP ahead of stock market debut

Shares of Northern Arc Capital are set for a debut at the bourses on Tuesday and the company is set to deliver a hefty listing pop to the investors on its Dalal Street debut. Despite a muted fall in the premium in the unofficial market, the shadow lender is likely to deliver a healthy gain to the investors on its listing.
 

Ahead of its listings, shares of Northern Arc Capital have seen some correction in its grey market premium (GMP) despite a positive move in the markets. Last heard, the company was commanding a premium of Rs 130 per share, suggesting a listing pop of around 50 per cent for the investors. However, it was around Rs 145 apiece, when its allotment was announced.
 

The IPO of Northern Arc Capital was open for bidding between September 16-19. The shadow lender 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.
 

Northern Arc has garnered impressive interest in its offering. is poised for a strong debut on the stock exchanges on Tuesday, potentially commanding a premium of about 57 per cent above the issue price, said Prathamesh P Masdekar, Research Analyst at StoxBox. "We recommend investors consider holding their positions from a medium to long-term perspective," he said.
 

The issue of Northern Arc 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, while 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, respectively.
 

Northern Arc Capital received an impressive subscription of 117.19 times and has a current grey market premium indicating high investor interest, said Shivani Nyati, Head of Wealth at Swastika Investmart. "The IPO's valuation was reasonable. The company's strong fundamentals, coupled with the overwhelming investor response, suggest a promising debut," she said.
 

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. Axis Bank, ICICI Securities and Citigroup Global Markets India were the book running lead managers of the Northern Arc Capital IPO, while Kfin Technologies served as the registrar for the issue. Shares of the company shall be listed on both BSE and NSE