Northern Arc Capital Limited, a diversified financial services platform focused on retail credit, is set to launch its Initial Public Offering (IPO) on September 16, 2024. The company, dedicated to catering to under-served households and businesses across India, is looking to raise ₹777 Crores through a combination of fresh issue and offer for sale.

Company Overview

With a mission to address diverse retail credit requirements, Northern Arc Capital has built a comprehensive platform over the past 15 years. The company operates across various sectors, aiming to serve a wide spectrum of credit needs.

IPO Details:

IPO Size: ₹777 Crores

Shares Offered:

Fresh Issue: 190.11 lakh shares worth ₹500 Crores

Offer for Sale: 105.32 lakh shares totaling ₹277 Crores

Price Band: ₹249 to ₹263 per equity share

Lot Size: 57 shares

Minimum Investment for Retail Investors: ₹14,991

Minimum Investment for HNIs: 14 lots (798 shares), totaling ₹209,874

ICICI Securities Limited, Axis Capital Limited, and Citigroup Global Markets India Private Limited are the book-running lead managers, while KFin Technologies Limited is the registrar for the IPO.

Grey Market Premium (GMP) and Subscription

The Grey Market Premium (GMP) for Northern Arc Capital IPO is anticipated to be in the range of ₹170 to ₹175, indicating potential listing gains of 63-65%. However, GMP is speculative and may not accurately reflect the actual listing price.

As of September 16, 2024, the IPO's live subscription status shows a 1.44 times subscription rate on its first day, reflecting robust investor interest. Real-time updates are available on the BSE website.

Anchor Investors Report

Northern Arc Capital has successfully raised ₹25.77 Crores from Anchor Investors at ₹263 per share, with 979,887 equity shares allocated. This substantial institutional backing signals confidence in the company’s future performance.

IPO Allotment and Listing

The allotment of shares is scheduled for September 20, 2024. Investors can check their allotment status by:

Visiting the IPO allotment status page on the registrar’s website.

Selecting Northern Arc Capital Limited IPO from the dropdown list.

Entering your application number, PAN, or DP Client ID.

Submitting the details to view your allotment status.

Objectives of the IPO

The net proceeds from the IPO will be used to meet future capital requirements for onward lending, supporting the company’s strategic expansion and ability to serve a larger customer base.

IPO Review and Recommendations

Priced between ₹249 and ₹263 per share, the Northern Arc Capital IPO presents a promising investment opportunity with expected listing gains of 63-65%. The company’s strong financial performance and strategic use of IPO proceeds suggest that the offering is attractively priced.

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