Northern Arc Capital, a prominent non-banking financial company (NBFC), has launched its initial public offering (IPO). The IPO is open for investors from Monday, September 16, and will continue until Thursday, September 19. The company aims to raise ₹777 crore through this IPO, which includes ₹500 crore from a fresh issue of shares and ₹277 crore from an offer for sale (OFS).
Before the IPO officially opened, Northern Arc Capital raised ₹229 crore from anchor investors. These investors purchased 87.02 lakh shares at ₹263 each. Anchor investors are typically large institutional investors who buy a substantial portion of the shares before the IPO becomes available to the public.
On the first day of subscription, the Northern Arc Capital IPO received limited interest. According to the Bombay Stock Exchange (BSE), the overall subscription level was 0.02 times. This indicates that the number of shares offered has not yet been fully subscribed.
Here’s a breakdown of the subscription:
- Retail Investors: The portion reserved for retail investors was subscribed 0.02 times.
- Non-Institutional Investors: This category had a subscription level of 0.05 times.
- Qualified Institutional Buyers (QIBs): There was no subscription in this category at the time of the report.
The grey market premium (GMP) reflects the expected listing price of a stock. For Northern Arc Capital’s IPO, the GMP is currently ₹158. This suggests that investors are optimistic about the stock’s performance. If this trend continues, the shares might list at a premium of around 60.08%, which would imply a listing price of approximately ₹421.
The price range for the IPO is set between ₹249 and ₹263 per share. For retail investors, the minimum lot size for an application is 57 shares. At the upper price band of ₹263, the minimum investment required is ₹14,991.
Important Dates
- IPO Subscription Period: September 16 to September 19.
- Allotment Date: Share allotments are expected to be finalized on Friday, September 20.
- Credit to Demat Accounts: Successful applicants should see their shares in their demat accounts by Monday, September 23.
- Refunds: Any unsuccessful applicants will receive their refunds on the same day, September 23.
- Listing Date: Shares are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Tuesday, September 24.
Kfin Technologies Limited is the official registrar for this IPO and will manage the allotment process and distribution of shares.
Before investing, it’s crucial to review Northern Arc Capital’s financial health, the IPO’s valuation compared to similar companies, and current market conditions. Although the initial subscription numbers might seem low, the grey market premium indicates a positive outlook. Investors should conduct thorough research or consult with a financial advisor to make informed decisions.
