Northern Arc Capital IPO subscribed over 57 times on Day 4 of bidding; check key details

The demand for the initial public offering (IPO) of non-banking financial company (NBFC) Northern Arc Capital Ltd remained buoyant on Thursday, September 19, the fourth day of bidding, with the issue being subscribed to more than 57 times so far.

According to data available on stock exchanges, the mainboard issue received bids for 123.65 crore shares against nearly 2.15 crore shares on offer, leading to an overall subscription of 57.57 times till 3 pm.

Non-institutional investors (NIIs) led the demand, as their quota was booked 114.58 times. The NIIs applied for 51.69 crore shares against 45.11 lakh shares on offer. The retail portion was overbooked by 27.39 times, with bids for 28.84 crore shares compared to 1.05 crore shares reserved for the category.

The qualified institutional buyers’ (QIBs) portion was oversubscribed 6.43 times, with bids for 3.76 crore shares as against 58.48 lakh shares reserved for the segment.

The employees’ segment was booked 6.24 times. The company's employees applied for 36.88 lakh shares against 5.9 lakh shares reserved for them. The company has offered the employees a discount of ₹24 on the issue price.

Northern Arc Capital IPO offer size, price band and other details

The subscription for the Northern Arc Capital IPO that started on September 16 will close at the end of the day on September 19. The share allotment status is expected to be finalised on September 20.

Successful bidders who will be allotted shares can expect them to be credited to their demat account by September 23, while refunds for others will be initiated on the same day. Northern Arc Capital stock is expected to list on September 24 on both the BSE and NSE.

Northern Arc Capital IPO is a book-built issue worth ₹777 crore. The mainboard IPO comprises a fresh issue of 1.9 crore shares, amounting to ₹500 crore, and an offer-for-sale (OFS) of 1.05 crore shares worth ₹277 crore.

Northern Arc Capital IPO price band has been set at ₹249 to ₹263 per share. The lot size, or the minimum bid quantity, for an application by retail investors, is 57 shares. This translates into a minimum investment of ₹14,991 for retail investors.

ICICI Securities Ltd, Axis Bank Ltd and Citigroup Global Markets India Pvt. Ltd are the book-running lead managers of the Northern Arc Capital IPO. Kfin Technologies Ltd is the registrar for the issue.

Northern Acr Capital IPO objective

Northern Arc Capital proposes to utilise the net proceeds from the fresh issuance to meet future capital requirements toward onward lending.

About Northern Arc Capital

Founded in 2009, Northern Arc Capital offers retail loans to underserved households and businesses in India. As of March 31, 2024, the company had facilitated over ₹1.73 trillion worth of financing, reaching out to over 101.82 million people across India.