Northern Arc Capital IPO Listing: Northern Arc Capital made a robust entry into the stock exchanges on September 24, with its shares listing at ₹351 on the BSE, marking an impressive gain of approximately 33.5% over its IPO price of ₹263 per share. This means IPO investors gained a substantial return of 33.5% on the very first day of trading. However, this profit was lower than the expectations set by the grey market, where Northern Arc shares were trading at a 50% premium just before the listing. For context, the grey market is an unofficial platform where shares are traded before their official listing on the stock market.
Through its IPO, Northern Arc Capital raised a total of ₹777 crore, out of which ₹500 crore came from the issuance of new shares, while the remaining ₹277 crore was generated from shares sold by existing shareholders. The IPO received an overwhelming response from investors, with the subscription closing at an impressive 110.71 times on the final day.
The company saw the highest demand from the Qualified Institutional Buyers (QIB) category, where bids were oversubscribed by 240.79 times. The Non-Institutional Investors category was subscribed 142.28 times, and the Retail Investors category saw 30.74 times more bids than the allocated shares.
About Northern Arc Capital
Founded in 2009, Northern Arc Capital specializes in providing retail financial services, with a strong focus on sectors such as MSME finance (Micro, Small & Medium Enterprises), microfinance (MFI), consumer finance, vehicle finance, affordable housing finance, and agriculture finance. The company has been involved in MSME finance for nearly 15 years and in consumer finance for 9 years.
Financially, Northern Arc Capital has shown consistent growth. In FY2022, the company posted a net profit of ₹181.94 crore, which surged to ₹242.21 crore in FY2023, and further increased to ₹317.69 crore in FY2024. During this period, the company’s revenue grew at a 44% compound annual growth rate (CAGR), reaching ₹1,906.03 crore.
