Northern Arc Capital IPO Sees Robust Demand on First Day

The initial public offering of Northern Arc Capital, a non-bank financial institution, was oversubscribed 2.86 times on its first day. The IPO aims to raise Rs 777 crore and includes a fresh issue of Rs 500 crore. Proceeds will go towards future capital requirements.

The initial public offering (IPO) of Northern Arc Capital, a prominent non-banking financial institution, garnered significant attention, achieving 2.86 times subscription on its opening day, according to NSE data.

The IPO, which aims to raise Rs 777 crore, received bids for 6,14,36,709 shares against an offer of 2,14,78,290 shares. In detail, the non-institutional investors’ segment saw 4.47 times subscription, while retail individual investors (RIIs) contributed to a 3.86 times subscription. The Qualified Institutional Buyers (QIBs) segment secured 2 percent subscription.

Northern Arc Capital had already raised Rs 229 crore from anchor investors ahead of the share sale, which is set to conclude on September 19. The IPO is priced between Rs 249-263 per share and includes a mix of a fresh issue of equity shares worth Rs 500 crore and an Offer For Sale (OFS) amounting to up to Rs 277 crore at the upper price range. The company plans to use the proceeds from the fresh issue for future capital requirements towards onward lending.