Northern Arc Capital made a decent stock market debut. The stock declined 12.21% from its day-high value of Rs 351 to hit a low of Rs 308.15. Despite the drop, the stock was still up 17.17% from its initial public offering (IPO) price of Rs 263.
Analysts have mixed opinions about the future of the stock. Shivani Nyati suggested booking part profit while keeping a stop loss of the issue price for those who wish to hold long term. Prathamesh P Masdekar of StoxBox also advised booking profits and exiting positions for the time being.
However, Prashanth Tapse, Senior VP (Research) at Mehta Equities, recommended holding onto the stock, citing Northern Arc’s strong sectoral focus and leadership position. The IPO was heavily subscribed, reflecting strong market confidence in the company’s future prospects.
northern arc shares debut unevenly
Proceeds from the IPO will be used to meet the company’s future capital requirements. Upon debut, Northern Arc Capital’s stock listed at a 33% premium on the NSE. However, it soon experienced a decline, settling 7.9% lower by the end of trading.
At 11:21 AM, the stock price was ₹322.5 (-7.8%), with a traded volume of 227.13 Lakhs, traded value of ₹759.11 crore, and a total market capitalisation of ₹5,200.45 crore. Initial trading data showed the company witnessed a significant CAGR rise of 18% in its assets under management (AUM) and 20% in its profit between the financial years 2021-22 and 2023-24. Northern Arc Capital, established to facilitate financial inclusion, serves individuals and businesses by providing structured debt products.
The intent behind the recent IPO and capital raising is to enhance their capacity for further lending and cater to a broader customer base. This significant market activity and investor interest highlight the growing confidence and the potential seen in Northern Arc Capital’s business model and future prospects.
