Northern Arc Capital IPO: The IPO of non-banking finance company Northern Arc Capital Limited got listed in the stock market today. The company’s shares were listed on BSE and NSE. On BSE, the company’s shares rose 33.46% to Rs 351 against the IPO price of Rs 263. While on NSE, this share was listed at Rs 350 with a 33% premium. With the listing, there was a competition to sell this share. At 10 am on NSE, there were more sellers and fewer buyers on this share. While the buy quantity was 8,52,620, the sell quantity was 13,95,143. On BSE, this share fell by 12% intraday and reached a low of Rs 308.15. Let us tell you that this issue of the company got a response from the investors. In three days, this IPO was subscribed about 111 times. The price band for the Rs 777 crore IPO of the Kolkata-based company was fixed at Rs 249-263 per share. There was a strong demand for this IPO in the grey market and it reached a premium of about 70%. That is, its listing was much below expectations.
What are the subscription details?
According to NSE data, the initial share sale received bids for 2,37,79,44,639 shares against an offer of 2,14,78,290 shares. The qualified institutional buyers (QIB) category was subscribed 240.79 times, while the non-institutional investors’ segment was subscribed 142.28 times. The retail individual investors (RII) segment received 30.74 times subscription. Northern Arc Capital Limited had raised Rs 229 crore from anchor (large) investors.
Also read: The grey market premium of this IPO is scary, will there be a loss on listing?
New shares worth up to Rs 500 crore were issued
New shares worth up to Rs 500 crore were issued in the IPO. Apart from this, an offer for sale (OFS) of 1,05,32,320 lakh equity shares worth Rs 277 crore is also part of this issue. The amount raised from Northern Arc Capital Limited IPO will be used to meet the capital requirements of the company.