Northern Arc Capital shares witnessed a sharp decline of 9% after a strong debut on the NSE, where the stock was listed at a 33% premium to its issue price. Despite the promising start, profit booking led to the subsequent drop in share value, affecting its market performance throughout the day.
After a stellar debut at ₹350 per share, 33% higher than its issue price of ₹263, Northern Arc Capital shares soon experienced a downward trend. The stock reached a low of ₹321.3 by midday due to profit booking by investors. This volatility highlights the unpredictable nature of share market investment, where post-listing performance can often fluctuate significantly.
At 1:00 pm, Northern Arc Capital shares were trading at ₹318.2, down 9% from their listing price. Despite the drop, the company's market capitalisation stood at ₹5,094.75 crore. This significant market movement emphasises the role that share market investment plays in capitalising on both opportunities and risks in real-time.
The proceeds from Northern Arc Capital's ₹777 crore initial share sale will be channelled into expanding its lending portfolio. The company has earmarked these funds to support its future lending requirements, which aligns with its long-term growth strategy. Share market investment in such IPOs reflects the broader investor interest in companies with solid future growth potential.
As of 11:45 am, the share price of Northern Arc Capital dropped by 10.2% on the NSE, trading at ₹314.2. On the BSE, the stock saw a similar decline, falling 10.5% to ₹313.9. The decline illustrates the delicate balance in share market investment, where factors such as listing premiums and immediate selling pressure can impact stock performance.
By 11:21 am, the stock was trading at ₹322.5, down 7.8%, with a total traded volume of ₹759.11 crore, further highlighting the active trading interest. Northern Arc Capital shares also contributed to discussions around share market investment, as investors analysed the potential of the stock following its listing.
The initial public offering (IPO) of Northern Arc Capital saw robust demand, with the issue being oversubscribed 110.71 times. Qualified institutional buyers (QIBs) subscribed 240.79 times, while non-institutional investors (NIIs) subscribed 142.28 times. Retail investors were not far behind, subscribing 30.74 times the portion reserved for them. The oversubscription signals high investor confidence in the company's long-term potential, making it an attractive opportunity for share market investment.
At 9:30 am, Northern Arc Capital's compound annual growth rate (CAGR) in assets under management (AUM) stood at 18%, while its profit grew at 20% between FY22 and FY24. These figures reflect the company's consistent growth trajectory, making it a notable contender for long-term share market investment.
Northern Arc Capital's strong listing, followed by a 9% fall, illustrates the unpredictable nature of share market investment, especially after a highly anticipated IPO. Despite the volatility, the company's long-term prospects, backed by strategic utilisation of IPO proceeds, make it a stock to watch in the coming months.
For investors focused on share market investment, Northern Arc Capital remains a key player in the financial sector with future potential in lending growth and profitability, making it a strong addition to diverse portfolios.
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