Northern Arc Capital Shares Skyrocket in Market Debut

Northern Arc Capital Ltd's shares surged over 33% upon market debut, opening at Rs 351 on the BSE from an issue price of Rs 263. The IPO was highly successful, receiving 110.71 times subscription. The Rs 777-crore share sale included both fresh issue and offer for sale components.

Shares of non-banking financial institution Northern Arc Capital Ltd soared by more than 33% in their market debut on Tuesday, rising to Rs 351 against the issue price of Rs 263 on the BSE.

In an impressive start, the stock also spiked 33% to Rs 350 on the NSE. This translates to a market valuation of Rs 5,115.72 crore for the company.

The Initial Public Offering (IPO) of Northern Arc Capital Ltd was a significant success, with 110.71 times subscription at the close of the share sale last Thursday. Priced between Rs 249 to Rs 263 per share, the Rs 777-crore IPO featured a fresh equity issue valued at Rs 500 crore and an Offer For Sale (OFS) of 1,05,32,320 equity shares worth Rs 277 crore at the upper end of the price band, provided by investor shareholders.

The proceeds from the fresh issue are earmarked for meeting Northern Arc's future capital needs for onward lending. Registered with the Reserve Bank of India (RBI) as a systemically important non-deposit-taking non-banking financial company (NBFC), Northern Arc has operated in the financial inclusion space for over a decade. The company is notable among the country's diversified NBFCs, offering a broad range of products and services across varied sectors, regions, and borrower segments. It provides credit access to underserved households and businesses, both directly and indirectly via originator partners.

(With inputs from agencies.)