Tata Capital Ltd, a Tata Group company, made its stock market debut today. The stock opened at Rs 330, showing an intraday gain of Rs 4 (+1.23 per cent), signalling a modest reaction on the first trading day.
The company’s initial public offering (IPO) was fully subscribed on Wednesday, the final day of bidding. The Rs 15,512 crore share sale received bids for 45.85 crore shares against 33.34 crore shares on offer, translating into a subscription of 1.38 times.
Among different investor categories, Qualified Institutional Buyers (QIBs) were the most active, with a subscription of 2.07 times. Non-institutional investors applied for 1.46 times the shares allocated to them, while Retail Individual Investors (RIIs) saw a 93 per cent subscription.
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Ahead of the IPO, Tata Capital raised Rs 4,642 crore from 68 domestic and international institutional investors. The anchor book saw demand nearly five times higher than the allocation, signalling strong investor confidence in the company.
The IPO was priced in the range of Rs 310–326 per share, placing Tata Capital’s valuation at approximately Rs 1.38 lakh crore at the top end.
The IPO comprised 47.58 crore shares, including a fresh issue of 21 crore shares and an Offer For Sale (OFS) of 26.58 crore shares, where Tata Sons sold 23 crore shares and the International Finance Corporation (IFC) offloaded 3.58 crore shares.
The proceeds from the IPO will strengthen Tata Capital’s Tier-1 capital base, helping support future lending and other capital requirements.
Tata Capital, classified as an upper-layer NBFC by the Reserve Bank of India in September 2022, meets the RBI’s requirement that such NBFCs must be listed within three years.
Tata Capital offers more than 25 lending products catering to individuals, entrepreneurs, small businesses, SMEs, and corporates.
Additionally, the company provides wealth management services, distributes third-party products like insurance and credit cards, and acts as a sponsor and investment manager for private equity funds.
