Northern Arc Capital Lists at 33.50% Premium Amid Market Reactions

Northern Arc Capital, a prominent player in the non-banking financial company (NBFC) sector, commenced trading on the Indian stock exchanges with a significant premium, defying market expectations. On the Bombay Stock Exchange (BSE), the stock opened at ₹351 per share, while on the National Stock Exchange (NSE), it opened at ₹350 per share. This opening marked a 33.50% premium for initial investors.

Despite the strong debut, the stock soon experienced selling pressure. On the BSE, Northern Arc Capital’s share price reached an intraday low of ₹324.90 shortly after opening. Similarly, on the NSE, it fell to an intraday low of ₹325 after its debut.

Arun Kejriwal, Founder of Kejriwal Research and Investment Services, commented on the stock’s performance, stating, “The company’s fundamentals are sound, and those who applied for the listing gain can book profit. However, those with a medium-to-long-term perspective may consider holding the stock as it may recover after the initial profit-booking phase.”

Prathamesh P. Masdekar, a Research Analyst at StoxBox, elaborated on the robust opening, emphasizing Northern Arc’s diversified financial services. He noted, “The company caters primarily to the retail credit requirements of under-served households and businesses in India. It possesses a broad base of lenders and investors, which provides a strong foundation for increased funding.”

On the financial front, Masdekar pointed out Northern Arc Capital’s diversified business model, spanning various sectors, products, and geographies, along with differentiated credit underwriting processes that support strong asset quality.

Prashanth Tapse, Senior Vice President—Research at Mehta Equities, advised stakeholders to maintain their holdings in the company. “For allottees, we continue to recommend HOLD on Northern Arc Capital shares due to its strong focus on MSME, microfinance, and consumer finance. We expect the market to recognize Northern Arc’s leadership and reward it with a premium multiple,” he stated.

Market participants are advised that the opinions and recommendations within this article are attributed to individual analysts and do not necessarily reflect the views of Mint. Investors are encouraged to consult certified financial advisors before making any investment decisions.