Northern Arc Capital IPO: Northern Arc Capital’s IPO is getting a great response from investors. By the second day of subscription, the issue has been subscribed 9.99 times. It has received bids for a total of 21.45 crore shares, while there are 2.14 crore shares on offer. The company intends to raise Rs 777 crore through the IPO. For this, a price band of Rs 249-263 per share has been fixed. There will be an opportunity to invest in this IPO till September 19.
Northern Arc Capital IPO: How much was subscribed
Qualified Institutional Buyers (QIB) – 0.20 times
Non-Institutional Investors (NII) – 21.72 times
Retail investors – 10.84 times
Employees – 2.25 times
Total – 9.99 times
(Source: BSE, 17 Sep 2024 | 05:00:00 PM)
Details of Northern Arc Capital IPO
You can invest in Northern Arc Capital’s ₹777 crore IPO in a price band of ₹249-₹263 and in lots of 57 shares. Employees will get a discount of Rs 24 on each share. The issue is open today on 16 September and will remain open till 19 September. Allotment of shares under the IPO will be finalized on 20 September. Then the entry will be made on BSE and NSE on 24 September. The registrar of the issue is Kaffin Tech.
Under this IPO, new shares worth Rs 500 crore will be issued. Apart from this, 1,05,32,320 shares with a face value of Rs 10 will be sold under the Offer for Sale window. The money from the Offer for Sale will be received by the shareholders selling the shares. The money raised through new shares will be used for capital needs to distribute loans.
GMP of Northern Arc Capital IPO
There is tremendous demand for this IPO in the grey market. In the unlisted market, this IPO is trading at a premium of Rs 202 today. According to this, the company’s shares are likely to be listed at a price of Rs 465. If this happens, investors will get a huge profit of 76 percent.
About Northern Arc Capital
Northern Arc Capital, formed in 2009, provides retail loans. Its focus is on MSME (Micro, Small and Medium Enterprise) finance, microfinance (MFI), consumer finance, vehicle finance, affordable housing finance and agriculture finance. It has been in MSME finance for about 15 years and in consumer finance for 9 years.
Talking about the financial health of the company, it has been continuously strengthening. In the financial year 2022, it had a net profit of Rs 181.94 crore, which jumped to Rs 242.21 crore in the next financial year 2023 and reached Rs 317.69 crore in the financial year 2024. During this period, the company’s revenue grew at a compound growth rate (CAGR) of more than 44 percent annually to Rs 1,906.03 crore.
