Mon Sep 16 14:01:00 UTC 2024: ## Northern Arc Capital IPO Oversubscribed on Day One, Strong Investor Interest Fuels Market Buzz
**Mumbai, India** – Northern Arc Capital, a leading financial services platform focused on underserved credit markets in India, saw its initial public offering (IPO) fully subscribed on the first day of bidding. The issue was oversubscribed by 1.02 times by noon, with strong interest from both retail and non-institutional investors. While retail investors subscribed 1.55 times, non-institutional investors booked 1.18 times the allotted shares.
However, Qualified Institutional Buyers (QIBs) showed tepid interest, bidding for only 6,213 shares out of the reserved 58.48 lakh shares.
The IPO, which closes on September 19, will see allotment on September 20 and listing on September 24.
Prior to the IPO launch, Northern Arc successfully raised ₹228 crore from anchor investors. The public issue comprises an offer for sale aggregating up to ₹277 crore and a fresh issue up to ₹500 crore. The company has set a price band of ₹249-263 per share for the IPO.
Analysts have been optimistic about the IPO, pointing to Northern Arc’s strong growth potential fueled by its sector expertise, digital platforms, and robust partner ecosystem. The company’s unique credit underwriting process, which ensures strong asset quality and consistent risk-adjusted returns, has also drawn praise.
BP Wealth, a financial advisory firm, endorsed the IPO, stating that the issue is valued at a fair P/BV of 1.49x on the upper price band based on FY24 book value. They recommended a ‘Subscribe’ rating. Nirmal Bang echoed this sentiment, highlighting the company’s diversified funding sources and improved credit rating as factors supporting sustainable expansion.
Northern Arc Capital, through its diverse financial services platform, has facilitated over ₹1.73 trillion worth of financing, reaching over 10 crore people across India. The company plans to use the proceeds from the IPO to meet future capital requirements for onward lending.
The strong investor interest and positive analyst sentiment surrounding Northern Arc Capital’s IPO indicate a bright future for the company as it seeks to further penetrate India’s underpenetrated credit markets.
First Piper 