Tue Sep 24 10:11:08 UTC 2024: ## Northern Arc Capital Makes Solid Stock Market Debut, But Falls Short of Grey Market Expectations

**Mumbai, India** – Northern Arc Capital made a strong debut on the stock market today, with its shares listing at a 33% premium over the initial public offering (IPO) price. The stock opened at Rs 351 on the Bombay Stock Exchange (BSE) and Rs 350 on the National Stock Exchange (NSE), marking a positive start for the company.

However, the listing fell slightly short of expectations set by grey market activity, where shares were trading at nearly a 50% premium prior to the listing. Despite this, the company’s strong IPO subscription, with bids 116.92 times the offered shares, demonstrates positive investor sentiment.

Northern Arc Capital’s IPO, priced between Rs 249–263 per share, aimed to raise Rs 777 crore. The IPO saw significant interest, particularly from retail investors who subscribed 31.57 times the allocated portion.

Analysts, while acknowledging the positive listing, remain cautious. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., noted that the listing was slightly below expectations, but recommended investors hold onto their shares. He highlighted the company’s strong focus on serving the retail credit needs of underserved households and businesses in India, particularly in sectors like MSMEs, microfinance, and consumer finance.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., shared a similar positive outlook but cautioned about the company’s negative cash flow and high debt-to-equity ratio. She recommended a balanced approach for investors, suggesting they consider booking partial profits while maintaining a stop-loss at the issue price for long-term holders.

Northern Arc Capital’s focus on underserved markets positions the company for future growth, but investors should carefully monitor its financial performance and challenges.

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