Tue Sep 24 10:11:08 UTC 2024: ## Northern Arc Capital Makes Strong Debut on Stock Exchanges, Shares Surge 33%

**Mumbai, India:** Shares of Northern Arc Capital Ltd. opened at a strong premium on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Monday, marking a successful debut for the non-banking financial company (NBFC).

The stock opened at Rs 351 on the BSE, representing a 33.46% premium over the issue price of Rs 263 per share. On the NSE, the stock debuted at Rs 350, reflecting a 33.07% premium. The strong opening reflects investor confidence in the company’s future prospects.

The Initial Public Offering (IPO) had witnessed overwhelming demand, garnering 110.9 times subscription on its final day, driven primarily by non-institutional investors. The IPO comprised a fresh issue of equity shares worth Rs 500 crore and an offer for sale of Rs 275 crore.

Northern Arc, a leading diversified NBFC, plans to utilize the proceeds from the fresh issue to meet its future capital requirements for lending operations. The company operates a unique model, providing direct and indirect credit access to underserved households and businesses through partner originators.

The IPO was initially filed in July 2021 but faced delays due to regulatory approvals. After receiving approval from the Securities and Exchange Board of India (SEBI) in September 2021, the company was unable to launch the IPO within a year. Northern Arc re-filed the Draft Red Herring Prospectus (DRHP) in February 2023 and finally received approval in July 2023.

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