Northern Arc Capital share price lists at 33.50% premium on BSE and NSE. Buy, sell or hold?

Stock market today: Disappointing the market expectations, Northern Arc Capital share price today listed on the Indian stock market exchanges at a robust premium. The newly listed stock opened on the BSE at ₹351 apiece, whereas it opened on the NSE at ₹350 per share, delivering around 33.50% premium to the lucky allottees.

The market's disappointment further intensified as the newly listed stock came under selling pressure post-listing. After opening at ₹351 apiece on the BSE, Northern Arc Capital's share price made an intraday low of ₹324.90 per share within a few minutes of the share listing. Likewise, on the NSE, the newly listed stock made an intraday low of ₹325 apiece post-debut.

Buy, sell or hold?

Speaking on Northern Arc Capital's share price debut, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, “The company's fundamentals are sound, and those who have applied for the listing gain can book profit. However, those with a medium—to long-term view may hold the stock and can think of accumulating more as the stock may bounce back after the recent profit-booking trigger.”

Justifying the positive debut of Northern Arc Capital shares, said, “The company has a diversified financial services platform set up primarily to cater to the diverse retail credit requirements of India's under-served households and businesses. The company has a diversified base of lenders (including various banks, offshore financial institutions and NBFCs), and investors provide a strong base for increased funding," said Prathamesh P Masdekar, Research Analyst at StoxBox. 

"On the financial front, Northern Arc is among India's diversified NBFCs regarding AUM as of 31st March 2024, with a business model diversified across offerings, sectors, products, geographies and borrower categories. The company's differentiated credit underwriting processes and risk models have helped deliver strong asset quality, the StoxBox expert added.”

Advising Northern Arc Capital shareholders to hold the newly listed scrip, Prashanth Tapse, Senior Vice President—Research at Mehta Equities, said, “For allottees, we continue to recommend HOLD Northern Arc Capital share as it is well-positioned for sustained growth for 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 towards its leadership position; this may result in delivering healthy post-listing gains also.”

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.