Tue Sep 17 04:00:08 UTC 2024: ## Northern Arc Capital IPO Subscribed 2.87 Times on Day 1, Grey Market Premium High
**Mumbai, India:** Northern Arc Capital, a non-bank financial institution (NBFC) focused on retail credit in India, saw its initial public offering (IPO) fully subscribed on the first day of trading, driven by strong demand from non-institutional and retail investors. The IPO, which opened on Monday, aims to raise ₹777 crore (approximately $95 million USD).
The IPO was priced between ₹249 and ₹263 per share, with investors able to bid for a minimum of 57 shares. The offer comprised a fresh issue of ₹500 crore and an offer for sale (OFS) of up to 1.05 crore shares by existing shareholders and promoters.
Northern Arc Capital received strong interest from anchor investors prior to the IPO, raising ₹229 crore from prominent players like SBI General Insurance, SBI Life Insurance, Reliance General Insurance, and Goldman Sachs.
The IPO received a subscription of 2.87 times on the first day. Non-institutional investors showed strong interest, subscribing 4.48 times their allotted quota. Retail investor participation was also robust, with the portion reserved for them subscribed 3.87 times.
The grey market premium (GMP) for Northern Arc Capital shares is currently at ₹178, indicating a strong demand for the shares. Based on the upper end of the IPO price band and the GMP, the estimated listing price is ₹441, representing a potential 67.68% gain from the IPO price.
Analysts are positive about Northern Arc’s prospects. They cite its strong financial track record, robust risk management practices, and a technology-driven platform that creates a scalable and sustainable business model. The company’s focus on underserved credit markets in India is also seen as a key driver of growth.
However, investors are advised to conduct thorough research and consult with financial advisors before making any investment decisions.
First Piper 