Northern Arc Capital IPO Lists with a 33% Premium!

Northern Arc Capital IPO Listing Details

Listing Date: Northern Arc Capital shares were listed on both BSE and NSE on September 24, 2024.
Listing Performance: The shares opened at ₹350 on the NSE, which translates to a premium of approximately 33% over the issue price of ₹263. This listing price indicates strong market confidence in Northern Arc Capital’s business model and future prospects.
Issue Price: The IPO was priced in a band of ₹254 to ₹263, with the final offer price set at ₹263.
Market Sentiment: Despite the grey market premium (GMP) suggesting a higher listing price, the actual debut at 33% above the issue price still reflected robust investor interest, although it was below the GMP expectations.
Subscription Details: The IPO saw significant subscription, with the issue being subscribed over 110 times, showcasing high investor interest across various investor categories, including qualified institutional buyers (QIBs) and retail investors.
Investment Strategy: Analysts and market observers suggested holding the stock for the long term, anticipating further gains due to Northern Arc’s leadership position and growth trajectory in the non-banking financial sector.
Financial Strategy: The proceeds from the IPO were intended to fund the company’s growth, particularly in enhancing its capital adequacy ratio (CRAR) and supporting its lending operations.
Market Analysis: The listing performance, while not meeting the highest expectations set by the GMP, still indicated a positive market reception, potentially driven by Northern Arc’s diversified business model and strong presence in financial inclusion.