Northern Arc Capital Shares Slide 2.68% After ₹440 Crore Block Deal

June 20, 2025: The shares of Northern Arc Capital fell significantly by almost 9% during the early trade on Friday, following a massive block deal that ignited volatility in the counter. By 1:30 PM, there was a bit of rise and the shares traded at ₹208.15 (down by 2.68%).

Heavy selling pressure pushed the shares towards a 1-month low of ₹195. The block deal of 2.23 crore shares (at ₹197 per share) further resulted in the slump.

₹440 Crore Worth of Shares Change Hands

A total of 2.23 crore shares, representing 13.84% of the company’s equity, were exchanged through a block deal window on Friday, valued at approximately ₹440 crore. The average deal price stood at ₹197 per share, 8% lower than the previous session’s closing price, indicating a significant discount and possible urgency behind the transaction.

Stock Reacts Sharply to Deal

At 9:35 AM, Northern Arc Capital’s stock was trading at ₹202.51, down 5.3% on the NSE, eventually settling around ₹203.38, marking a 4.91% intraday decline. In the past six months, the company’s shares have lost nearly 9.5%, adding to investor concerns over sustained bearish momentum. However, there was a bit of a rise in the shares as they were down by 2.68% by 01:30 PM.

Buyers and Sellers Unidentified

While the identities of the buyers and sellers in this high-value deal remain undisclosed, the transaction has sparked market speculation. As per the March quarter shareholding pattern, the lack of promoter holding makes such large moves even more significant. The firm’s shareholding is currently divided among:

• Foreign Institutional Investors (FIIs): 5.2%
• Domestic Institutional Investors (DIIs): 22.5%
• Public Shareholding: 72.2%

Previous High-Profile Stake Changes

This block deal follows earlier notable stake changes. On April 9, 2025, investor Ashish Dhawan acquired 35 lakh shares (2.17% stake), while entities like Dvara Trust and 360 ONE Special Opportunities Fund – Series 3 offloaded parts of their holdings.

Company Overview

Northern Arc Capital is a non-deposit-taking NBFC, registered with the RBI as a systemically important entity. The company has actively promoted financial inclusion for over a decade, offering credit access to underserved sectors through direct lending and strategic partnerships.

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