Tue Sep 24 08:11:07 UTC 2024: ## Northern Arc Capital Makes Strong Stock Market Debut, Shares Open 33% Above IPO Price
**MUMBAI, INDIA – September 24, 2024** – Northern Arc Capital Ltd, a non-deposit taking NBFC specializing in financing underserved households and businesses in India, made a strong debut on the stock market today. The company’s shares opened at ₹351 apiece on the Bombay Stock Exchange (BSE), representing a 33.46% premium over its initial public offering (IPO) price of ₹263 per share.
The IPO, which raised ₹777 crore, saw strong demand from investors, with the issue oversubscribed by 110.91 times. The company plans to use the proceeds from the fresh issue to meet future capital requirements for onward lending.
Northern Arc Capital’s focus on sectors like MSME finance, microfinance, consumer finance, and affordable housing finance has been a major draw for investors. The company’s strong track record, with over ₹1.73 trillion worth of financing facilitated and reaching over 101.82 million people across India, has also contributed to the positive market sentiment.
Despite the strong initial gains, Northern Arc Capital shares saw a decline later in the day, falling as much as 11.1% from their listing price. While analysts remain optimistic about the company’s long-term prospects, they advise investors to book part profits and maintain a stop loss at the issue price.
The company’s price-to-book value of 1.8x, compared to the industry average of 3.0x, suggests that Northern Arc Capital is currently undervalued. Analysts believe the stock is fairly priced and has potential for sustained growth due to its strong sectoral focus.
While the strong opening and subsequent decline highlight the volatility of the stock market, Northern Arc Capital’s debut has proven to be a successful one. The company’s strong fundamentals and promising growth outlook suggest that it has the potential to become a long-term winner in the Indian financial sector.
First Piper 