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PremiumNorthern Arc Capital IPO Listing Highlights: The equity shares of Northern Arc Capital Ltd made their stock market debut today. Northern Arc Capital IPO listing date is today, September 24. Northern Arc Capital IPO saw strong demand from investors and got heavily oversubscribed. Following strong demand, Northern Arc Capital share price began trading with a premium of over 33% to the issue price on stock exchanges today. Northern Arc Capital shares were listed at ₹351 apiece on the BSE, a premium of 33.46% to the IPO price of ₹263 per share.
On Tuesday, shares of Northern Arc Capital settled 7.81 per cent lower at ₹323.60 apiece on the BSE.
Northern Arc Capital IPO Listing Live: Northern Arc Capital’s revenue increased by 45% to ₹1,906.03 crore in FY24 from ₹1,311.2 crore in FY23. The company’s profit after tax (PAT) increased by 31% to ₹317.69 in FY24 from ₹242.21, YoY. Reserves and Surplus rose to ₹2,123.37 crore from ₹1,784.22 crore, YoY.
Northern Arc Capital IPO Listing Live: Northern Arc Capital share price declined 10% from its listing price to ₹315.90 apiece on the BSE. The stock was up 20.11% from its IPO price.
Northern Arc Capital IPO Listing Live: Listing of Northern Arc Capital was slightly below street expectation despite receiving healthy subscription response, as the market sentiment has been subdued since the opening trades.
“Post listing, we continue to believe that investors should continue to HOLD because of an opportunity to hold a stake in a diversified financial services platform dedicated to addressing the retail credit needs of under-served households and businesses in India. Northern Arc Capital share is well-positioned for a sustained growth in the long term with the company’s strong sectoral focus on MSME, microfinance, and consumer finance. Hence, we believe the market could give Northern Arc Capital a premium multiple for its leadership position which may result in the company delivering a healthy return post listing," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Northern Arc Capital IPO Listing Live: Northern Arc Capital raised ₹777 crore from the public issue, which was a combination of fresh issue of 1.9 crore equity shares amounting to ₹500 crore and offer for sale (OFS) of 1.05 crore shares worth ₹277 crore. The company proposes to utilize the fresh issue proceeds to meet future capital requirements toward onward lending.
Northern Arc Capital IPO Listing Live: Northern Arc Capital Ltd is a non-deposit taking diversified NBFC with an Asset Under Management (AUM) of ₹11,710 crore as of March 2024. The company focuses on sectors such as MSME finance (40%), microfinance (23%), consumer finance (27%), vehicle finance (6%), affordable housing finance (3%) and agriculture finance (1%).
Northern Arc Capital operates through a network of 328 Originator Partners, 50 Retail Lending Partners and 1,158 Investor Partners providing multi-channel services including Lending, Placements and Fund Management. Northern Arc offers financing to Originator Partners for on-lending and directly to customers. Its presence spans 671 districts across 28 states and seven union territories.
Northern Arc Capital IPO Listing Live: Northern Arc Capital Ltd offers retail loans to underserved households and businesses in India, made a good debut on the stock market at ₹350 per share, a substantial 33% premium over its issue price of ₹263. The company has facilitated over ₹1.73 trillion worth of financing, reaching out to over 101.82 million people across India. The company has shown growth in top and bottom lines, negative cash flow and a high debt-to-equity ratio are areas of concern.
Considering the competitive landscape, financial challenges, and market demand, investors may consider booking part profit here, and those who want to hold it for the long term may keep a stop loss of the issue price, said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.
Northern Arc Capital IPO Listing Live: Northern Arc Capital share price extended decline after listing with a decent premium. Northern Arc Capital shares fell as much as 11.1% from its listing price to ₹312 per share on BSE. The stock was listed at ₹351 per share.
Northern Arc Capital IPO Listing Live: Based on annualized FY24 earnings to post-IPO paid-up equity capital of the company, Northern Arc Capital IPO is priced at a P/B of 1.83x. Thus, analysts believe the stock to be fairly priced compared to peers. The price-to-book value (1.8x) indicates the company is undervalued compared to peers (industry average of 3.0x), analysts said.
Northern Arc Capital IPO Listing Live: Northern Arc Capital shares were listed at ₹351 apiece on the BSE, a premium of 33.46%, which is ₹88 higher than the issue price of ₹263 per share. Northern Arc Capital IPO lot size was 57 shares. Therefore, the listing gains for investors with one lot of equity shares would be ₹5,016.
Northern Arc Capital IPO Listing Live: Northern Arc Capital share price declined after making a strong debut. Northern Arc Capital shares fell over 8% from its listing price to ₹321.25 apiece on BSE. The stock is still trading a 23.5% premium to the IPO price.
Northern Arc Capital IPO Listing Live: Northern Arc Capital shares were listed at ₹351 apiece on the BSE, a premium of 33.46% to the issue price of ₹263 per share. On NSE, Northern Arc Capital shares made a debut with a 33.08% premium at ₹350 apiece.
Northern Arc Capital IPO Listing Live: Prathamesh P Masdekar, Research Analyst, StoxBox also is of the view that the Northern Arc Capital stock is poised for a strong debut on the stock exchanges today, potentially commanding a premium of approximately 57% above the upper band price.
“We recommend that investors allotted shares consider holding their positions from a medium to long-term perspective," Masdekar said.
Northern Arc Capital IPO Listing Live: Analysts also expect decent listing gains for Northern Arc Capital IPO investors.
“Considering healthy subscription demand and upbeat market sentiments, it is indicating a healthy listing gain in the range of ~40% - 50% or even above against the issue price of ₹263 per share. For allottees we continue to recommend ‘Hold’ Northern Arc Capital share as it is well-positioned for sustained growth for long term with the company’s strong sectoral focus on MSME, microfinance, and consumer finance," said Prashanth Tapse, Sr VP Research – Research Analyst, Mehta Equities Ltd.
Hence, Tapse believes the market could give Northern Arc Capital shares a premium multiple towards its leadership position and this may result in delivering healthy post listing gains also.
Northern Arc Capital shares will be listed on both the stock exchanges, BSE and NSE. The stock will be a part of the Special Pre-open Session (SPOS) and will be available for trading at 10:00 am today.
“Trading Members of the Exchange are hereby informed that effective from Tuesday, September 24, 2024, the equity shares of Northern Arc Capital Ltd shall be listed and admitted to dealings on the Exchange in the list of ‘B’ Group of Securities," a notice on BSE said.
Northern Arc Capital IPO Listing Live: The trends in Northern Arc Capital IPO GMP today, or grey market premium today indicates a strong debut of shares. Northern Arc Capital shares are commanding a decent premium in the unlisted market today. Northern Arc Capital IPO GMP today is ₹149 per share, according to stock market experts. This indicates that Northern Arc Capital shares are trading higher by ₹149 in the grey market than their IPO price. Considering the Northern Arc Capital IPO GMP today and the issue price, Northern Arc Capital shares are estimated to be listed at ₹412 apiece, a premium of 57% to the IPO price of ₹263 per share.
Northern Arc Capital IPO Listing Live: Northern Arc Capital IPO received strong demand during its bidding period as the issue was subscribed 110.91 times in total. The IPO was booked 31.08 times in the retail category and 240.79 times in the Qualified Institutional Buyers (QIBs) category. The Non Institutional Investors (NII) portion received 142.41 times subscription.
Northern Arc Capital IPO Listing Live: Northern Arc Capital IPO opened for subscription on Monday, September 16, and closed on Thursday, September 19. The IPO allotment was finalized on September 20, and the Northern Arc Capital IPO listing date is today, September 24. The equity shares of Northern Arc Capital Ltd will be listed on BSE and NSE.
Northern Arc Capital IPO price band was set at ₹249 to ₹263 per share. The company raised ₹777 crore from the book-built issue which was a combination of fresh issue of 1.9 crore equity shares amounting to ₹500 crore and offer for sale (OFS) of 1.05 crore shares worth ₹277 crore.
Northern Arc Capital IPO Listing Live: The equity shares of Northern Arc Capital Ltd are set to make their stock market debut today. Northern Arc Capital IPO listing date is today, September 24.
