A prominent financial services stock came under pressure on June 20, slipping nearly 9% amid heightened activity in the block deal window, triggering investor concerns over a potential large-scale stake offloading.
With a market capitalisation of Rs 3,330 crore, shares of Northern Arc Capital Limited plunged nearly 9% on Friday, hitting an intraday low of Rs 195.55 compared to the previous close of Rs 214.50, amid heavy selling pressure in the block deal window.
Northern Arc Capital’s shares came under intense selling pressure in early trade on Friday, falling as much as 9% following a large block deal worth Rs 440 crore. Approximately 2.23 crore shares, representing 13.84% of the company’s total equity, changed hands in the block window at an average price of Rs 197 per share, marking a significant discount to the previous close of Rs 214.50.
While the identities of the buyers and sellers remain undisclosed, the size and pricing of the transaction weighed heavily on investor sentiment, sending the stock sharply lower in the opening session.
Although the stock showed some signs of recovery from its intraday low, it was still trading 3.5% lower at Rs 206.80. With a current market capitalisation of Rs. 3,330 crore, Northern Arc Capital now trades well below its IPO price of Rs 263 and has lost nearly half its value from the post-listing high of Rs 350.
Northern Arc Capital is a diversified financial services platform serving the credit needs of Indian households and businesses across six key sectors. Since 2009, the company has facilitated financing of over Rs 1,73,000 crore, impacting more than 10.18 crore lives through its network of originator and retail lending partners.
Powered by a proprietary tech stack, Nimbus, nPOS, Nu Score, and Altifi Northern Arc ensure efficient credit delivery and risk management. As of FY25, it manages a fund AUM of Rs 3,158 crore, lending AUM of Rs 13,634 crore, with disbursements of Rs 19,840 crore.
The company operates through 360 branches, 350 origination partners, and 54 retail lending partners, serving nearly 19.88 lakh direct customers. The company reported a revenue of Rs 2,342 crore in FY25, up by 24 percent from its FY24 revenue of Rs 1,891 crore. Coming to its profitability, the company reported a decrease in net profit of 6 percent to Rs 301 crore in FY25 from Rs 318 crore in FY24.
The stock delivered an ROE and ROCE of 12.3 percent and 10.3 percent respectively and is currently trading at a P/E of 11.2x as compared to its industry average of 25.52x.
Written By Rohan Pandey
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