Skyrocketing Success: Northern Arc Capital’s IPO Astoundingly Subscribed 20.15 Times – Capital Market Triumph

IPO of Northern Arc Capital Oversubscribed by 20.15 Times

Last Updated: Sep 18, 2024 | 5:31 PM IST

The initial public offering (IPO) of Northern Arc Capital has garnered bids for 43.27 crore shares, significantly surpassing the 2.14 crore shares on offer, achieving a subscription rate of 20.15 times, as per data from the stock exchange at 17:00 IST on Wednesday, September 18, 2024.

The bidding for the IPO commenced on Monday, September 16, 2024, and is set to conclude on Thursday, September 19, 2024. The price band for the issue was established between Rs 249 and Rs 263 per share. Investors have the option to bid for a minimum of 57 equity shares and multiples thereof.

The IPO aims to raise Rs 500 crore through the issuance of fresh equity shares, ranging from 1.90 crore shares at the lower price of Rs 249 per share to 2.01 crore shares at the upper price of Rs 263 per share. Additionally, the offering includes an Offer for Sale (OFS) of 1.05 crore shares, targeting to raise between Rs 262.55 crore and Rs 277.00 crore. Key sellers in the OFS include Leap Frog Financial Inclusion India (II), Accion Africa-Asia Investment Company, Eight Roads Investment Mauritius II, Dvara Trust, 360 One Special Opportunities Fund, and Sumitomo Mitsui Banking Corporation.

The fresh issue proceeds will bolster Northern Arc Capital’s capital base to support future growth. The IPO listing is expected to increase the company’s visibility and create a public market for its shares in India.

Ahead of the IPO, on September 13, 2024, the company raised Rs 228.86 crore from anchor investors by allotting 87.02 lakh shares at Rs 263 each to 15 anchor investors.

Northern Arc Capital operates as a diversified financial services platform, addressing the credit needs of underserved households and businesses across India. Over 15 years, it has facilitated financing amounting to Rs 1.73 lakh crore, impacting 10.18 crore lives nationwide. For the fiscal year ending March 31, 2024, the company reported a consolidated net profit of Rs 308.33 crore and operational income of Rs 1,712.11 crore.

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First Published: Sep 18, 2024 | 5:23 PM IST

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