Can Northern Arc Capital IPO Deliver Multibagger Gains Like Bajaj Housing Finance? Check GMP & Subscription Surge

The Northern Arc Capital IPO has attracted a lot of attention, with market analysts believing the company operates in a highly profitable and in-demand sector.

Just before the IPO opened for public subscription, Northern Arc Capital secured ₹229 crore from anchor investors, including well-known names like SBI General Insurance, SBI Life Insurance, Reliance General Insurance, Kotak Mahindra Life Insurance, Goldman Sachs (Singapore), Societe Generale, and Quant Mutual Fund.

The IPO was open from Monday, September 16, and closed on September 19. The price band was set between ₹249 and ₹263 per equity share. Investors could place bids starting from a lot size of 57 shares and then in multiples of that.

For this IPO, 50% of the shares were reserved for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and 35% for retail investors. There was also a portion reserved for employees, offering them a discount of ₹24 per share. A total of 590,874 shares were allocated to employees under this scheme.

Northern Arc Capital IPO Subscription Status

As of the fourth day of subscription, Northern Arc Capital’s IPO was subscribed 110.91 times, according to data from BSE.

The portion reserved for retail investors was subscribed 31.08 times, while non-institutional investors subscribed 142.41 times. The QIB portion saw the highest demand, with a subscription rate of 240.79 times. The employee portion was subscribed 7.33 times.

In total, bids were placed for 2,38,22,43,807 shares, compared to the 2,14,78,290 shares on offer.

On the third day, the IPO was subscribed 20.18 times, while on the second day, it reached 9.99 times. On the first day of the IPO, it was subscribed 2.87 times.

Grey Market Premium (GMP)

As of September 21, the grey market premium (GMP) for Northern Arc Capital IPO was ₹128. This means the shares were trading at a ₹128 premium in the grey market, according to investorgain.com.

Based on the upper price band of ₹263 and the grey market premium, the estimated listing price was ₹391 per share, which is about 48.67% higher than the IPO price.

The grey market premium has been rising over the past 11 days, suggesting a strong listing for Northern Arc Capital shares. According to experts, the lowest GMP recorded was ₹0, while the highest reached ₹202.

The GMP reflects how much investors are willing to pay above the IPO price in anticipation of future gains.