The Northern Arc Capital IPO attracted significant attention from both institutional and retail investors. Let’s delve into the key details of the company, the IPO process, allotment status, and its business model. Northern Arc Capital IPO Allotment Status

1. Company Overview: Northern Arc Capital

Northern Arc Capital Limited is a financial services company in India that focuses on providing debt financing solutions. The company operates as a Non-Banking Financial Company (NBFC) and primarily offers loans to under-served segments of the market, including microfinance, small and medium enterprises (SMEs), agricultural enterprises, and affordable housing sectors. Their innovative approach focuses on providing access to debt capital for borrowers who traditionally lack access to mainstream financing options.

Key Business Areas:

• Microfinance: Collaborates with microfinance institutions (MFIs) to extend loans to low-income households. Northern Arc Capital IPO Allotment Status
• SME Finance: Provides financial products for small and medium-sized businesses.
• Affordable Housing Finance: Offers loans to support housing in urban and semi-urban areas. Northern Arc Capital IPO Allotment Status
• Agriculture: Specializes in providing loans for agricultural activities, particularly to farmers and small-scale enterprises.

Founded in 2008, Northern Arc has played a pivotal role in increasing access to credit in sectors that are generally considered high risk but essential for economic development.

2. IPO Overview

The Northern Arc Capital IPO opened for subscription from September 12, 2024, to September 14, 2024. The company offered 29,529,913 equity shares with a face value of ₹10 per share. The price band for the IPO was set between ₹249 and ₹263, with the company aiming to raise around ₹777 crore.

Key Points:

• Price Band: ₹249 – ₹263 per share
• Total Issue Size: ₹777 crore
• Fresh Issue: ₹300 crore
• Offer for Sale (OFS): ₹477 crore
• Lot Size: 57 shares
• Market Lot: Investors needed to apply for at least one lot of 57 shares (minimum investment ₹14,991), with further multiples thereafter.

The IPO was a mix of a fresh issue of shares and an Offer for Sale (OFS), where existing shareholders, including promoters, reduced their stake in the company.

3. IPO Subscription

The IPO saw overwhelming demand, particularly from institutional investors. The overall subscription was recorded at 110.91 times the shares offered:

• Qualified Institutional Buyers (QIBs): 240.79 times
• Non-Institutional Investors (NIIs): 97.12 times
• Retail Individual Investors (RIIs): 31.08 times

This indicates that the IPO was highly oversubscribed across all investor categories, signaling strong market interest.

4. Allotment Status and Dates

The allotment status for Northern Arc Capital’s IPO was finalized on September 20, 2024. Investors who applied can check their allotment status via the following methods:

• Registrar Website (KFin Technologies): You can visit the KFintech website and check the IPO allotment status by entering your application number, PAN, or Demat account details.
• BSE Website: Visit the BSE IPO Allotment Status page and select “Equity” as the issue type. Then select “Northern Arc Capital” from the dropdown menu, enter your details, and view the allotment. Northern Arc Capital IPO Allotment Status
• NSE Website: Similarly, you can check the status on the NSE website.

5. Listing Date

The shares of Northern Arc Capital are expected to be listed on September 24, 2024, on both the BSE and NSE. Investors who have been allotted shares will have them credited to their Demat accounts by September 23, 2024. In case of non-allotment, refunds will be initiated on September 21, 2024.

6. Grey Market Premium (GMP) and Expected Listing Gains

The Grey Market Premium (GMP) for Northern Arc Capital shares indicates strong listing gains. As of the latest data, the GMP is ₹128 per share, suggesting that the stock could list at around ₹391, which represents a premium of nearly 49% over the issue price of ₹263.

7. Financial Performance of the Company

Northern Arc Capital has a strong track record in the financial services space, with a focus on providing financing to underserved sectors. As of the latest financial data:

• Revenue: The company recorded revenues of ₹1,320 crore in FY2023, a significant increase from previous years.
• Profit After Tax (PAT): In FY2023, the company posted a net profit of ₹210 crore, showing consistent profitability. Northern Arc Capital IPO Allotment Status

The company’s financial metrics are strong, which, coupled with the high subscription rates, signals investor confidence. Northern Arc Capital IPO Allotment Status

8. Investment Risks and Opportunities

While Northern Arc Capital presents a lucrative opportunity, especially for those interested in companies that serve underserved financial markets, there are inherent risks:

• Market Risk: Like all NBFCs, Northern Arc is subject to credit risk and market fluctuations. Economic downturns or regulatory changes could impact its business.
• Concentration Risk: As the company focuses on niche markets such as microfinance and agriculture, it is more vulnerable to risks in those sectors.Northern Arc Capital IPO Allotment Status

However, the company’s solid financial performance, innovative business model, and high subscription numbers indicate strong investor sentiment.Northern Arc Capital IPO Allotment Status

Northern Arc Capital IPO Allotment Status: Full Company Details

The Northern Arc Capital IPO has generated significant interest in the market, with strong oversubscription across categories. With the allotment status finalized on September 20, 2024, and listing set for September 24, 2024, investors are eager to see how the stock performs, particularly given the strong Grey Market Premium. Northern Arc Capital’s unique position in the financial services industry, focusing on underserved sectors, makes it a promising investment for long-term growth. Northern Arc Capital IPO Allotment Status