Northern Arc Capital IPO:The Rs 777 crore IPO of non-banking finance company Northern Arc Capital will open on September 16. Investors can invest in this issue till September 19. The price band of Northern Arc Capital's IPO has been fixed at Rs 249-263 per share. The issue opened for anchor investors on September 13. Under the IPO, along with fresh equity shares worth Rs 500 crore, investors will offer for sale (OFS) of 1,05,32,320 shares up to Rs 277 crore. In this way, the size of the issue becomes Rs 777 crore. Let us tell you that the company's shares are already available at a 61% premium in the grey market.

What is going on GMP?

According to Investorgain.com, the Northern Arc Capital IPO is available in the grey market at a premium of Rs 158. This means that the potential listing price of the company's shares could be Rs 421. That is, investors can make a profit of about 61% on the very first day.

what is the detail

Northern Arc is a non-banking finance company (NBFC) and has been active in the financial inclusion space for over a decade. Eligible employees bidding in the employee reservation portion are being offered a discount of Rs 24 per equity share. Bids can be made for a minimum of 57 equity shares and in multiples of 57 equity shares thereafter.

Northern Arc Capital will use the funds raised from this IPO to meet its future capital requirements for further lending in targeted areas such as MSME financing, MFIs, consumer finance, vehicle finance, affordable housing finance and agriculture finance. The company intends to do this to ensure compliance with RBI regulations on capital adequacy for FY 2025.