The Northern Arc Capital Initial Public Offering (IPO) has been a major highlight in the stock market recently. As of the fourth day of the IPO, the response from investors has been very positive.
The Northern Arc Capital IPO, which started on Monday, September 16, is set to close today, September 19. The company has set the price range for its shares between ₹249 and ₹263 each. Investors have the option to bid for a minimum of 57 shares and in multiples thereafter. The IPO has generated significant interest, and here’s why it’s making headlines.
Northern Arc Capital is a leading financial services company in India, specializing in providing retail credit to underserved households and businesses
As of the latest update, the IPO has been heavily subscribed. On the fourth day, the IPO was subscribed 27.26 times, according to data from the Bombay Stock Exchange (BSE). This means that for every share available, investors have bid for 27 times more shares than were offered.
Here’s a closer look at the subscription numbers:
- Retail Investors: The portion of shares allocated to retail investors (small individual investors) has been subscribed 22.75 times. This high demand indicates strong interest from individual investors.
- Non-Institutional Investors (NII): This segment, which includes high-net-worth individuals and companies, has shown even greater enthusiasm, with the shares being subscribed 75.44 times.
- Qualified Institutional Buyers (QIB): Institutional investors have booked 44% of their allocated shares.
- Employee Portion: Employees of Northern Arc Capital were able to purchase shares at a discounted price of ₹24 each. This portion has been subscribed 5.14 times.
The Grey Market Premium (GMP) for Northern Arc Capital is another indicator of its popularity. GMP refers to the extra amount investors are willing to pay for shares over the IPO price in the grey market. Currently, the GMP for Northern Arc Capital is ₹160. This means that shares are trading at a premium of ₹160 above the IPO price of ₹263.
With this GMP, the expected listing price of Northern Arc Capital shares is estimated to be ₹423 each, which is about 60.84% higher than the upper end of the IPO price band. This reflects strong confidence among investors about the stock’s future performance.
The Northern Arc Capital IPO has been well-received because the company is seen as operating in a promising market segment. The IPO has set aside:
- 50% of the shares for Qualified Institutional Buyers (QIBs),
- 15% for Non-Institutional Investors (NII),
- 35% for Retail Investors.
Additionally, a portion of shares is reserved for employees at a discounted rate. This allocation structure aims to ensure broad participation from different types of investors.
Northern Arc Capital is seen as serving a high-demand market segment. The company is expected to grow its loan portfolio significantly over the next few years. This growth potential has attracted a lot of investor interest.
The Northern Arc Capital IPO has generated substantial interest and strong subscription figures. The high GMP indicates optimism about the stock’s future performance. For investors considering this IPO, the strong subscription numbers and positive market signals suggest it could be a promising investment opportunity. However, as with any investment, it’s important to do thorough research and consider personal investment goals before making a decision.