Northern Arc Capital, a non-banking financial company (NBFC), is preparing to launch its Initial Public Offering (IPO) soon. Ahead of the IPO, the company has successfully raised ₹229 crore from anchor investors. This shows that big institutional investors are interested in the company’s offering, which is a good sign for its future performance. The IPO will open for public subscription on Monday, September 16, 2024, and will be available for investors until Thursday, September 19, 2024.
The total size of the IPO is ₹777 crore. The price range for each share is set between ₹249 and ₹263. This means investors can buy shares within this price band, and the final price will depend on the demand. The face value of each share is ₹10, but the actual price for investors is much higher, between ₹249 and ₹263. This pricing is standard for IPOs, where the market price is often higher than the face value of shares.
Northern Arc Capital’s IPO is divided into:
- Qualified Institutional Buyers (QIB): Up to 50% of shares.
- Non-Institutional Investors (NII): At least 15% of shares.
- Retail Investors: 35% of shares.
The IPO lot size is 57 shares, meaning investors need to buy at least 57 shares to participate. Further purchases must be made in multiples of 57 shares. This makes the minimum investment in the IPO between ₹14,193 and ₹14,991, depending on the final price per share.
Important Dates for Investors
- The IPO subscription will open on September 16, 2024, and close on September 19, 2024.
- The allotment of shares will be finalized on September 20, 2024. This means investors will know whether they have received shares or not by this date.
- The refund process will begin on September 23, 2024, for those who did not receive shares.
- Shares will be credited to the demat accounts of successful applicants on September 23, 2024.
- Northern Arc Capital’s shares will be listed on the stock exchanges (BSE and NSE) on September 24, 2024.
Northern Arc Capital is a well-known NBFC in India, and it is registered with the Reserve Bank of India (RBI) as a systemically important financial company. This means the company plays a big role in India’s financial system, particularly in helping small and medium-sized businesses (SMEs) get loans and financial services.
The company has been working in the financial inclusion space for over a decade. Its business model focuses on providing access to credit for underserved households and businesses. It does this directly and indirectly by partnering with other financial institutions. Northern Arc Capital has built a strong reputation by helping India’s smaller businesses, which are crucial for the country’s economic growth.
Before investing in any IPO, including Northern Arc Capital’s, it’s important to do thorough research. Study the company’s financial performance, business model, future plans, and the overall industry outlook. This will help you make informed decisions and understand the risks and opportunities involved. While IPOs can offer great investment potential, they also come with risks, especially in a fluctuating market.
The Northern Arc Capital IPO has generated a lot of interest among investors, especially after raising ₹229 crore from anchor investors. The company’s strong track record, diversified business model, and focus on financial inclusion have made it an attractive option for those looking to invest in a promising NBFC. With its IPO set to hit the market soon, investors are keeping a close eye on this opportunity. However, it’s always important to do your research and understand the investment before making any commitments.