Applying for Northern Arc Capital's IPO: Is It Right? Verify Subscription Status, GMP, and Evaluat
September 16, 2024, was the start date of the Northern Arc Capital initial public offering (IPO), which would end on September 19, 2024. With a minimum lot size of 57 shares and a price ranging of ₹249 to ₹263 per share, individual investors must invest a minimum of ₹14,991. Through the IPO, the business hopes to collect ₹777 crore, with an additional ₹500 crore coming from a new share offering.
The IPO received a great reaction as of the first day of subscription, with an overall subscription of 2.47 times. Non-institutional investors subscribed at a rate of 3.51 times, while the retail part was oversubscribed by 3.49 times. On the first day, though, there wasn't much interest in the QIB area. With the grey market premium (GMP) of approximately ₹165 right now, a listing price of ₹428 could be achievable, representing a 62% increase from the highest price band.
Because of Northern Arc Capital's good financial performance and strong asset quality—which are demonstrated by its low gross non-performing asset (NPA) of 0.45%—advisors often advise subscribing to the IPO. Because it lends money to underprivileged people and companies, the company is well-positioned in the expanding Indian
Given the favorable prognosis for potential long-term growth as well as short-term listing benefits, several experts recommend that the IPO be given serious consideration. But as with any investment, it's critical to assess the risks involved, especially the company's reliance on ongoing funding and its susceptibility to changes in the economy in its targeted areas (Finance Saathi
) (mint).
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