Mon Sep 16 07:00:01 UTC 2024: ## Northern Arc Capital IPO Opens for Subscription, Seeks to Raise ₹777 Crore

**Mumbai, September 16:** Retail loan provider Northern Arc Capital launched its initial public offering (IPO) today, aiming to raise ₹777 crore. The IPO, which will be open for subscription until Thursday, September 19, comprises a fresh issue of ₹500 crore and an offer for sale (OFS) of ₹277 crore.

The company, a non-banking financial company (NBFC), has already secured ₹229 crore from anchor investors, including SBI General Insurance Company, SBI Life Insurance Company, and Goldman Sachs (Singapore) Pte.

**Key Highlights of the IPO:**

* **Price band:** ₹249 – ₹263 per share
* **Minimum investment:** ₹14,991 (for 57 shares)
* **Expected listing date:** Tuesday, September 24, on BSE and NSE
* **Current Grey Market Premium (GMP):** ₹158, indicating potential listing at a premium of 60.08%

**Company Overview:**

Northern Arc Capital specializes in providing retail loans to underserved households and businesses across India. The company boasts a differentiated credit underwriting process, resulting in strong asset quality and consistent risk-adjusted returns. In FY24, it reported a profit of ₹317.69 crore, a significant increase from the previous years.

**Expert Opinions:**

Experts have largely expressed a positive outlook on the IPO, citing the company’s strong financials, strategic positioning in the growing Indian credit market, and attractive valuation.

Prathamesh Masdekar, a research analyst at StoxBox, has given the IPO a ‘subscribe’ rating, highlighting the company’s robust asset quality and differentiated credit underwriting process.

Anshul Jain, head of research at Lakshmishree Investment and Securities, also recommends the IPO, particularly for investors seeking short-term gains. He points to Northern Arc Capital’s impressive financial performance and attractive valuation compared to its peers.

**Potential Risks:**

While the IPO offers an exciting opportunity, investors should consider the potential risks associated with the company’s smaller scale, which could limit its ability to compete effectively with larger NBFCs and banks in the long run.

**Disclaimer:** This news article is for informational purposes only and should not be construed as investment advice. Investors are advised to conduct thorough due diligence and consult with certified financial experts before making any investment decisions.

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