Investor response to Northern Arc Capital's IPO has been positive; on Tuesday, the second day of bidding, the IPO has already been subscribed 5.01 times.
10,75,31,241 shares were bid on in the initial share sale, out of the 2,14,78,290 shares that were offered. While the portion for retail investors received subscriptions 6.37 times, the non-institutional investors (NIIs) quota attracted 8.77 times the subscriptions. The qualified institutional buyers (QIBs) part fetched a 2 per cent subscription.
Anchor investors
Investors such as SBI Life Insurance Company, SBI General Insurance Company, Kotak Mahindra Life Insurance Company, Reliance General Insurance Company, Societe Generale, Quant Mutual Fund, and Goldman Sachs (Singapore) Pte contributed Rs 229 crore to the company in the anchor round prior to the IPO.
Price band and lot size
The company has set a price range of Rs 249–Rs 263 for the initial share sale. There is a minimum of one lot, or 57 shares, for which bids may be made, and then multiples of that lot.
IPO structure and OFS seller
The IPO consists of a new issuance of equity shares valued at Rs 500 crore and an offer for sale (OFS) component of up to 1.05 crore shares by current shareholders.
Under the OFS, the following companies will sell their holdings: Leapfrog Financial Inclusion India (II) Ltd; Accion Africa-Asia Investment Company; Sumitomo Mitsui Banking Corporation; Dvara Trust; Eight Roads Investments Mauritius II Ltd; and 360 ONE Special Opportunities Fund (formerly IIFL Special Opportunities Fund).
IPO allocation
A quarter of the net offer is allocated to retail investors, thirty-five percent to non-institutional investors, and fifty percent to qualified institutional buyers (QIBs).
Subscription and allotment timetable
The IPO of Northern Arc Capital ends on Thursday, September 19, 2024. The basis for allotment of Northern Arc Capital IPO shares is expected to be finalized on Friday, September 20, 2024, following the closure of the subscription window.
On Monday, September 23, 2024, the company's shares will be credited into demat accounts.
Previous attempt at IPO
Northern Arc Capital submitted draft IPO documents to market regulator SEBI in July 2021, one month before the company made its first public offering. It was authorized to go public by the regulator in September of that same year. However, the launch was canceled.
