Northern Arc Capital Shares Close At 22.4% Premium Over Issue Price

Shares of Northern Arc Capital Ltd. closed on the BSE at Rs 322 per share, a premium of 22.4% over the issue price of Rs 263 apiece, on Tuesday. The stock debuted at Rs 322.3 per share on the National Stock Exchange, marking a premium of 22.54%.

The stock had debuted at a premium of 33.46% at Rs 350 apiece on the BSE earlier on Tuesday.

The initial public offering was subscribed 110.9 times on its final day, led by demand from non-institutional investors. The IPO included a fresh issue of equity shares worth Rs 500 crore and an offer for sale of Rs 275 crore.

Proceeds from the fresh issue will be used to meet future capital requirements of the company towards onwards lending.

Northern Arc is a leading player among the country's diversified NBFCs, with a business model diversified across offerings, sectors, products, geographies, and borrower segments. It provides direct and indirect credit access to underserved households and businesses, through originator partners.

The company had earlier filed IPO papers in July 2021 and received Securities and Exchange Board of India's approval in September 2021. However, it could not open an IPO within a period of one year from the SEBI approval.

The financial services company filed the DRHP again with SEBI on Feb. 2 and got approval on July 15. It received an observation letter on July 10.