Northern Arc Capital IPO listing date today. GMP, experts signal up to 57% listing gain for allottees

Northern Arc Capital IPO: The equity shares of Northern Arc Capital Ltd are set to make their stock market debut today. Northern Arc Capital IPO listing date is fixed as September 24, Tuesday.

The initial public offering (IPO) of Northern Arc Capital Ltd saw strong demand from investors and got heavily oversubscribed. As the IPO allotment is finalised, investors now focus on Northern Arc Capital IPO listing today. Northern Arc Capital shares will be listed on both the stock exchanges, BSE and NSE.

“Trading Members of the Exchange are hereby informed that effective from Tuesday, September 24, 2024, the equity shares of Northern Arc Capital Ltd shall be listed and admitted to dealings on the Exchange in the list of ‘B’ Group of Securities,” a notice on BSE said.

Northern Arc Capital shares will be a part of the Special Pre-open Session (SPOS) and will be available for trading at 10:00 am today.

The trends in Northern Arc Capital IPO GMP today, or grey market premium today indicates a strong debut of shares. Analysts also expect decent listing gains for Northern Arc Capital IPO investors.

Here’s what Northern Arc Capital IPO GMP ahead of listing indicate:

Northern Arc Capital IPO GMP

Northern Arc Capital shares are commanding a decent premium in the unlisted market today. Northern Arc Capital IPO GMP today is ₹149 per share, according to stock market experts. This indicates that Northern Arc Capital shares are trading higher by ₹149 in the grey market than their IPO price.

Northern Arc Capital IPO Listing Price

Considering the Northern Arc Capital IPO GMP today and the issue price, Northern Arc Capital shares are estimated to be listed at ₹412 apiece, a premium of 57% to the IPO price of ₹263 per share.

Northern Arc Capital received a healthy response from all types of investors led by reasonable valuations and an opportunity to invest in a diversified financial services platform dedicated to addressing the retail credit needs of under-served households and businesses in India.

“Considering healthy subscription demand and upbeat market sentiments, it is indicating a healthy listing gain in the range of ~40% - 50% or even above against the issue price of ₹263 per share. For allottees we continue to recommend ‘Hold’ Northern Arc Capital share as it is well-positioned for sustained growth for long term with the company’s strong sectoral focus on MSME, microfinance, and consumer finance,” said Prashanth Tapse, Sr VP Research – Research Analyst, Mehta Equities Ltd.

Hence, Tapse believes the market could give Northern Arc Capital shares a premium multiple towards its leadership position and this may result in delivering healthy post listing gains also.

Prathamesh P Masdekar, Research Analyst, StoxBox also is of the view that the Northern Arc Capital stock is poised for a strong debut on the stock exchanges today, potentially commanding a premium of approximately 57% above the upper band price.

“We recommend that investors allotted shares consider holding their positions from a medium to long-term perspective,” Masdekar said.

Northern Arc Capital IPO Details

Northern Arc Capital IPO opened for subscription on Monday, September 16, and closed on Thursday, September 19. The IPO allotment was finalized on September 20, and the Northern Arc Capital IPO listing date is today, September 24. The equity shares of Northern Arc Capital Ltd will be listed on BSE and NSE.

Northern Arc Capital IPO price band was set at ₹249 to ₹263 per share. The company raised ₹777 crore from the book-built issue which was a combination of fresh issue of 1.9 crore equity shares amounting to ₹500 crore and offer for sale (OFS) of 1.05 crore shares worth ₹277 crore.

Northern Arc Capital IPO received strong demand during its bidding period as the issue was subscribed 110.91 times in total. The IPO was booked 31.08 times in the retail category and 240.79 times in the Qualified Institutional Buyers (QIBs) category. The Non Institutional Investors (NII) portion received 142.41 times subscription.

ICICI Securities, Axis Bank and Citigroup Global Markets India are the book running lead managers of the Northern Arc Capital IPO, while Kfin Technologies is the IPO registrar.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.