After the strong listing of Bajaj Housing Finance, investors are now eyeing other IPOs. This week two more mainboard segment IPOs have opened. One of them is the IPO of Northern Arc Capital Limited, now should one invest money here or not? What are the possibilities regarding listing gains? Let us know the answers to all the questions.
Northern Arc Capital का IPO
Northern Arc Capital’s IPO is open for subscription from today i.e. Monday and will close on September 19. The company has fixed the price band for the IPO at Rs 249-263 per share.
Allotment and Listing
After the subscription closes on September 19, the allotment of shares will take place on the next day i.e. September 20. Investors whose IPO does not come will get their money refunded on September 23, 2024. Talking about listing, the company’s listing on BSE and NSE can happen on July 24.
Lot Size
The lot size for Northern Arc Capital’s IPO is 57 shares. This means that any retail investor who wants to invest in this IPO will have to buy at least 57 shares for Rs 14,991. Retail investors can buy a maximum of 13 lots.
Issue Size
The total issue size of Northern Arc Capital’s IPO is 29,543,727 shares. The company will raise Rs 777 crore through this. The company will raise Rs 500 crore through a fresh issue of 19,011,407 shares and Rs 277 crore through an offer for sale (OFS) of 10,532,320 shares. Let us tell you that Northern Arc Capital IPO has raised Rs 228.86 crore from anchor investors.
Business Model
It is a non-banking finance company or NBFC. The company has three primary channels through which it does business. These include lending, placement and fund management. This company was founded in 2009 and provides retail loans to the upper middle class and businesses in India.
Grey Market
The GMP of Northern Arc Capital IPO is Rs 158. The listing price for Northern Arc Capital IPO with an upper price band of Rs 263 can be Rs 421. This means that the listing can happen at a premium of 60.08%. In this sense, investors can see a profit of around 60% on their investment as soon as the listing happens.
Invest money or not?
Nirmal Bang Securities
The brokerage says Northern ARC is well positioned for growth, leveraging regional expertise, digital platforms and a strong partner ecosystem to access India’s credit markets. Diversification in its funding sources and improving credit rating indicate strength. Its asset quality is excellent, with low GNPAs and NNPAs. The price-to-book value (1.8x) reflects that. We recommend subscription.
SBI Securities
The brokerage says that the company is one of the leading non-banking financial companies in the country, whose assets under management are also very strong. It has become an expert in providing credit facilities in target sectors in India. It has a strong ecosystem of 328 originator partners, 50 retail lending partners and 1,158 investor partners. We recommend subscription to it for long term investment.
KR Choksey Finserv
We have a positive outlook on the future of Northern Arc Capital as it continues to strategically strengthen its ecosystem. The company is developing and strengthening partnerships, while expanding its technology products to further enhance the customer experience. Hence, we recommend a ‘Subscribe’ rating for this IPO.