Northern Arc Capital Ltd: Shares Drop Amid Block Deal

Shares of Northern Arc Capital Ltd experienced a significant decline on June 20, 2025, following a substantial block deal. The company’s stock fell nearly 9% in the opening session after a transaction involving shares worth Rs 440 crore was executed. This block deal accounted for approximately 2.23 crore shares, representing 13.84% of the total equity shareholding, with an average price per share of Rs 197. This price was an 8% discount compared to the previous session’s closing price.

At 9:35 a.m., the shares were trading at Rs 202.51 on the National Stock Exchange (NSE), marking a 5.3% decrease. Over the past six months, the stock has seen a decline of around 9.5%. According to the March quarter shareholding data, there is no promoter shareholding in the firm, with Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) holding significant stakes.

Market Context

The broader market showed positive momentum on the same day, with the Sensex rising by 1,046.30 points or 1.29% to close at 82,408.17, and the Nifty increasing by 319.15 points or 1.29% to 25,112.40. This uptick helped the Nifty comfortably close above the 25,100 mark, snapping a three-day losing streak. The BSE Midcap and Smallcap indices also saw gains of 1.2% and 0.5%, respectively.

Company Overview

Northern Arc Capital Ltd operates within the financial services sector, focusing on providing micro, small, and medium enterprise (MSME) finance, microfinance (MFI), and other financial services such as consumer, vehicle, affordable housing, and agriculture finance. The company primarily serves clients in India.

Financial Snapshot

  • Close Price (June 19, 2025): Rs 208.38
  • 52 Weeks High: Rs 350 (September 23, 2024)
  • 52 Weeks Low: Rs 141.47 (April 6, 2025)
  • Market Cap: Rs 35,117,748,701
  • Price Earnings Ratio: 10.886

The block deal involving Northern Arc Capital Ltd has raised concerns among investors regarding potential large-scale stake offloading, contributing to the stock’s decline.