Shares of Northern ARC Capital Ltd. surged 9.06% on Monday following a significant block deal transaction during the morning session. According to The Economic Times and NSE data, 1.21 crore equity shares, representing 6.25% equity of the company, changed hands at ₹278 per share during the pre-market block deal session, resulting in a total transaction value of ₹335.24 crore. The deal was executed at 2.71% below Friday's closing price of ₹285.75 and at a 13% discount to the current market price of ₹314.95. The official buyers and sellers in the block deal remain undisclosed at this time, with exchange disclosures containing participant names expected after the end of the trading session.
Foreign investors Accion International, Leapfrog Financial, Eight Roads Investments, and Augusta Investments executed a coordinated exit from Northern ARC Capital through open-market transactions on August 31. Leapfrog Financial Inclusion India (II) offloaded 46.47 lakh shares, equivalent to 2.87% stake for ₹129.18 crore, while Eight Roads Investments Mauritius II sold 85.96 lakh shares, representing 5.31% stake for ₹238.96 crore. Augusta Investments II disposed of 23.38 lakh shares, or 1.44% stake for ₹65 crore, and Accion Africa-Asia Investment Company sold 56.32 lakh shares, representing 3.48% stake for ₹156.57 crore. The combined exit represented a 13.12% stake in the non-banking finance company.
Multiple institutional investors acquired the entire 13.12% stake sold by the foreign investors at ₹278 per share. Plutus Wealth Management LLP, led by Arpit Khandelwal, acquired 38.66 lakh shares for ₹107.5 crore, while Cohesion MK Best Ideas Sub-Trust purchased 48.74 lakh shares for ₹135.5 crore. Other buyers included Societe Generale, Plutus Wealth Management, Cohesion MK Best Ideas Sub-Trust, Neo Prime Fund, Ashoka India Equity Investment Trust, India Acorn Fund, Adivam Family Trust, S Gupta Homes, Shubhi Consultancy Services, and Singularity Equity Fund I. Following the block deal announcement, Northern ARC Capital shares demonstrated strong performance, closing at ₹311.65 amid heavy volumes on the National Stock Exchange.
The latest transactions significantly altered Northern ARC Capital's shareholding pattern. According to the updated June 2026 shareholding data, Leapfrog Financial Inclusion India (II) held a 16.15% stake in the company, while Eight Roads Investments Mauritius II maintained a 6.87% stake. Augusta Investments II continued to hold 16.02%, and Accion Africa-Asia Investment Company owned 3.08%. Among public shareholders, India's Mutual Funds owned only 0.19% stake in the company at the end of the June quarter, while Alternate Investment Funds held a 3.83% stake, as reported by CNBC TV18. Sumitomo Mitsui Banking Corporation (SMBC) maintained a 3.76% stake, and over 86,000 small retail investors with authorized share capital of up to ₹2 lakh held a 13% stake.
According to The Economic Times, Northern ARC Capital reported strong first quarter earnings with net interest income growing 44.2% to ₹496.1 crore from ₹344.1 crore in the previous year. The company's total revenue increased 30% to ₹767.5 crore compared to ₹590.6 crore in the year-ago period. Provisions stood at ₹110.5 crore compared to ₹103 crore last fiscal, while basic earnings per share (EPS) increased to ₹7.54 from ₹6.42 last year. The company's lending assets under management (AUM) increased 26% to ₹16,855 crore, with direct-to-customer lending AUM growing 51% to ₹10,766 crore, accounting for 64% of the overall lending AUM.
The NBFC company's stock has shown consistent strength with 7% gains in the past month and over 8% higher in the last five market sessions. Northern ARC Capital shares surged to a 52-week high of ₹334 apiece on July 13, 2026, while the 52-week low was at ₹206 apiece on March 30, 2026. As of Monday's trading session, the company's market capitalisation stood at ₹5,000 crore, reflecting its strong market position in the financial services sector. The latest surge of 9.06% following the block deal announcement demonstrates continued investor confidence in the company's growth trajectory.
