Northern Arc Capital IPO Subscribed 9.99 Times On Day 2

Northern Arc Capital Ltd.'s initial public offering has been subscribed 9.99 times on the second day on Tuesday. It was subscribed 2.87 times on the first day.

The company is aiming to raise up to Rs 776 crore from the offering, which includes a fresh issue of equity shares worth Rs 500 crore and an offer for sale of Rs 275 crore. The non-banking financial company has set a price band of Rs 249–263 per share for its three-day IPO.

The minimum application lot size is 57 shares. Ahead of the IPO, Northern Arc Capital allotted 87.02 lakh shares at Rs 263 per share to 15 anchor investors, raising Rs 228.9 crore.

The IPO will conclude on Wednesday, and the company is set to be listed on the BSE and the National Stock Exchange. Proceeds from the fresh issue will be used to support the company's future capital requirements for lending.

• Issue opens: Sept. 16.

• Issue closes: Sept. 19.

• Issue price: Rs 249 to Rs 263 per share.

• Fresh issue: Rs 500 crore.

• Offer for sale: Rs 276 crore.

• Bid lot: 57 shares.

• Listing: BSE and NSE. 

The Chennai-based company operates a diverse business model across sectors, products, locations, and borrower categories. It serves underserved households and companies with direct and indirect credit access via originator partners. 

Proceeds from the fresh issue will be allocated towards various lending sectors, including Rs 150 crore each for MSME finance, microfinance, and consumer finance. Additionally, Rs 25 crore will go towards vehicle finance, Rs 5 crore towards affordable housing finance, and Rs 20 crore will be used for agricultural finance.

The IPO has been subscribed 9.99 times as of 5 p.m. on Tuesday.

• Qualified institutional buyers: 0.20 times or 20%.

• Non-institutional investors: 21.72 times.

• Retail investors: 10.84 times.

• Reserved for employees: 2.25 times.

The grey market premium of Northern Arc is Rs 178 as of 6:03 a.m., implying a 67.68% gain over the IPO price, according to Chittorgarh's unit Investorgain. The estimated listing price based on the GMP is Rs 441 per share.

GMP is not an official price quote for the stock and is based on speculation. 

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.