Northern Arc Capital made a strong debut on the NSE, listing at ₹350 per share, marking a 33.08% increase over its issue price. The stock opened ₹87 higher than the upper end of its price band, which was set at ₹263 per share. The company’s IPO received a remarkable response from investors, with the issue being subscribed 110.91 times by the close of the subscription period.
The Chennai-based non-banking finance company (NBFC) offered shares in the range of ₹249 to ₹263, giving it a post-listing market capitalisation of ₹4,244 crore. The IPO included a fresh issue of equity shares worth ₹500 crore and an Offer For Sale (OFS) of 1.05 crore equity shares. The funds raised from the fresh issue will be used to meet the company’s future capital requirements, particularly for onward lending.
Registered as a systemically important NBFC with the RBI, Northern Arc Capital has been operating in the financial inclusion space for over a decade. The company’s business model is highly diversified across sectors, products, geographies, and borrower segments, offering credit access to under-served households and businesses.
The company had initially filed for its IPO in July 2021 and received SEBI’s approval in September of that year but delayed the launch. Financially, Northern Arc Capital showed strong growth, with revenue increasing by 45% and profit after tax rising by 31% between FY23 and FY24.
