Northern Arc Attributes IPO's Success To Consistent Performance
According to CEO Ashish Mehrotra, Northern Arc Capital has demonstrated a resilient and high-quality performance in terms of NIMs.
The large participation in the initial public offering of Northern Arc Capital Ltd. is an indication of the company’s consistency of performance and the impact it makes, said its Managing Director and Chief Executive Officer Ashish Mehrotra.
Commenting on the successful listing of the shares of Northern Arc Capital, Mehrotra told NDTV Profit that a business with consistent performance is genuinely exciting.
“We have demonstrated with the response we got from the large participation that a business with consistency of performance, and more importantly, commercial viability and the impact it makes, is genuinely exciting and attracts the centre stage of what we do,” he said.
Northern Arc Capital's balance sheet has been growing by 31% in the last three years, said Mehrotra.
“We play three sets on the multi-channel, i.e., we lend. We provide placement solutions, which is equal to the amount of lending we do if you compare on an absolute rupee basis. We invest in the funds across the six sectors,” he said.
“We essentially enable the flow of credit to India’s underserved households and businesses. We lend money to the customers and also to our originating partners and use that opportunity to create credit solutions for them to raise more money that in turn creates a fee income for us. We also use our domain expertise to invest again in these six to seven sectors to ensure the seamless flow of credit,” Mehrotra added.
Mehrotra further pointed out that Northern Arc has demonstrated a resilient and high-quality performance in terms of net interest margins, adjusted credit cost and so on.
Shares of Northern Arc Capital debuted on the BSE at Rs 351 apiece, up 33.46% against the issue price of Rs 263 per share.
On the NSE, the stock opened at Rs 350 per share, a 33.08% premium.
Northern Arc Capital IPO was subscribed 110.9 times during the bidding period from Sept. 16 to Sept. 19. The IPO comprised a fresh issue of equity shares worth Rs 500 crore and an offer-for-sale component worth Rs 277 crore.
The company plans to utilise the funds raised via the IPO to address the future capital needs for onwards lending.
