Tue Sep 24 18:03:13 UTC 2024: ## Northern Arc Capital Makes Strong Stock Market Debut, But Shares Dip After Listing

**Mumbai, India (September 25, 2024)** – Northern Arc Capital, a non-banking financial company (NBFC) specializing in retail credit, made a strong debut on the stock exchanges on Tuesday, listing at a 33% premium to its issue price. The IPO was oversubscribed 117.19 times, raising Rs 777 crore for the company. However, shares experienced a dip in the initial trading session, closing at Rs 323.60, down 7.81% from the listing price.

Despite the initial dip, the stock remains 20.11% above its IPO price. Analysts attributed the initial selloff to a subdued market sentiment, but remain optimistic about the long-term prospects of the company.

“We continue to believe that investors should continue to HOLD because of an opportunity to hold stake in a diversified financial services platform dedicated to addressing the retail credit needs of under-served households and businesses in India,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities.

Northern Arc Capital’s business model leverages a proprietary technology platform to facilitate digital financing solutions, reaching underserved populations across India. The company specializes in lending to MSMEs, MFIs, consumer finance, vehicle loans, affordable housing, and agriculture.

The company reported a strong financial performance, with consolidated net income increasing from Rs 916 crore in FY22 to Rs 1,906 crore in FY24. Their asset under management (AUM) also witnessed a 28.3% growth over the same period, reaching Rs 11,710 crore.

The strong performance and future growth potential attracted fifteen anchor investors, including Quant Mutual Fund-BFSI fund, SBI Life Insurance, and Goldman Sachs (Singapore), who invested Rs 228.86 crore in the company.

While the initial dip in share price is a cause for some concern, experts believe that Northern Arc Capital is well-positioned for sustained growth in the long term, driven by its strong focus on key sectors like MSME and consumer finance. Investors are advised to monitor the stock closely as the company establishes its position in the market.

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