Northern Arc Capital IPO: Find Out Latest Subscriptions, GMP And Allotment Details; Is It Worth Subscribing?

Northern Arc Capital IPO: The NBFC's Rs 777 crore worth of IPO oversubscribed 2.86x on the first day of opening, September 16. Non-intuitional and retail investors are top buyers of the IPO in the initial stage, while demand from QIBs has been broadly dull. Bidding in the IPO will continue till September 19. Brokerage Anand Rathi has recommended SUBSCRIBE on the IPO.

On Day 1, Monday - September 16, the Northern Arc Capital IPO received bids of 6,14,36,709 equity shares against the offered size of 2,14,78,290 shares - registering a full subscription of 2.86x. The portion reserved for Retail Individual Investors(RIIs) oversubscribed by 3.86x, while the portion reserved for Non-Institutional Investors oversubscribed by 4.47x. While the Qualified Institutional Buyers(QIBs) portion performed dull on the first day.

The 100% book building IPO's price band is fixed at Rs 249 per share to Rs 263 per share. The bid lot size is 57 Equity Shares and in multiples thereof.

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

GMP: As per Investor Gain, Northern Arc Capital IPO's last GMP is ₹178, last updated Sep 16th 2024 11:31 PM. With a price band of 263.00, Northern Arc Capital IPO's estimated listing price is ₹441 (cap price + today's GMP). The expected percentage gain/loss per share is 67.68%.

After the IPO, the allotment of shares of Northern Arc Capital is likely to take place on September 20, followed by listing on September 24.

Should You Subscribe?

As per Anand Rathi Capital, over the past 15 years, North Arc Capital Limited has significantly contributed to the Indian retail credit market, facilitating the financing of more than ₹1.73 trillion since 2009, impacting over 101.82 million lives. As of March 31, 2024, they have established an ecosystem that includes 328 Originator Partners, 50 Retail Lending Partners, and 1,158 Investor Partners. Their multi-channel offerings encompass Lending, Placements, and Fund Management, supported by proprietary technology solutions and a robust data repository containing over 35.17 million data points.

The brokerage added that they intend to expand their presence to more effectively reach and serve underserved households and businesses in their target sectors across India. This will involve enhancing and growing their origination channels by bringing new Originator Partners onto their platform, financing the debt capital needs for the growth of these partners, and onboarding new Retail Lending Partners to help them access more direct-to-customer borrowers.

On the valuation, At the upper price band company is valued at a P/BV of 1.4X with a market cap of ₹ 42,428.6 million post-issue of equity shares. Thus, we recommend an "SUBSCRIBE" rating to the IPO."

Northern Arc Capital Limited was founded in 2009 and offers retail loans to underserved households and businesses in India. They are a diversified financial services platform set up primarily with the mission of catering to the diverse retail credit requirements of the under-served households and businesses in India. Over the last 15 years, their approach has been to create a differentiated and comprehensive play on the retail credit ecosystem in India spread across sectors.