Northern Arc Capital shares list at 33.5% premium
Northern Arc Capital made a strong entry into the Indian stock market today, with its shares listing at a substantial premium on both Sensex and Nifty. The newly listed stock opened at ₹351 per share on Sensex and ₹350 per share on Nifty, delivering an impressive premium of around 33.50% to its initial allottees.
Post-listing selling pressure impacts Northern Arc Capital's shares
Following its strong debut, Northern Arc Capital's shares experienced a post-listing dip due to selling pressure. The company's share price fell to an intraday low of ₹324.90 per share on the BSE and ₹325 per share on the NSE shortly after listing. This downward trend reflects market dynamics and investor behavior following the initial excitement of a new stock listing.
Experts weigh in on Northern Arc Capital's market performance
Arun Kejriwal, Founder of Kejriwal Research and Investment Services, commented on Northern Arc Capital's market debut. He stated that while those who applied for listing gain can book profit now, those with a medium to long-term view may hold the stock. Prathamesh P Masdekar, Research Analyst at StoxBox, also highlighted the company's strong fundamentals and diversified financial services platform as reasons for its positive debut.
Northern Arc Capital's financial strength and future prospects
Masdekar further emphasized Northern Arc Capital's position as one of India's diversified NBFCs in terms of AUM as of March 31, 2024. He noted that the company's business model is diversified across offerings, sectors, products, geographies and borrower categories. This diversification and strong asset quality are due to the company's unique credit underwriting processes and risk models.
Hold Northern Arc Capital shares for long-term growth: Expert
Prashanth Tapse, Senior Vice President—Research at Mehta Equities, advised shareholders to hold onto their Northern Arc Capital shares. He believes the company is well-positioned for sustained long-term growth due to its strong focus on MSME, microfinance and consumer finance sectors. Tapse suggested that this could lead the market to assign a premium multiple to Northern Arc Capital's leadership position, potentially resulting in healthy post-listing gains as well.
