Tata group NBFC Tata Capital has raised a sum of Rs 4,642 crore from more than 100 anchor investors, with Life Insurance Company (LIC) being the largest backer with Rs 700 crore (15.08 per cent of the anchor book). Other promiment anchor investors in the book include Nomura India Investment Fund Mother Fund (3.77 per cent), Nomura India Investment Fund Mother Fund (3.77 per cent), and Morgan Stanley Investment Funds Asia Opportunity Fund (3.15 per cent), according to a company filing.
Norway’s wealth fund, Government Pension Fund Global has been allotted 2.69 per cent equity worth Rs 125 crore.
Tata Capital anchor book price band
According to the IPO-bound Tata Capital, the shares were allotted at the upper end of the Rs 310-326 apiece price band.
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What are anchor investors and why do companies need them?
Anchor investors are typically large, established institutional investors — such as mutual funds and pension funds — that commit to buying a significant chunk of an IPO before it opens for public bidding.
Their participation offers three benefits to IPO-bound companies:
- Promote stability
- Boost investor confidence
- Establish anchor price
These investors — comprising high-profile institutional investors — have a lock-in period applying to them that prevents them from selling their portions immediately following the IPO.
ALSO READ: Could Rs 15,500-crore Tata Capital IPO be a game-changer?
Tata Capital IPO: Key dates, issue price, lot size, listing date
The Tata group IPO opens on October 6 and closes on October 8.
The stock is set to list on exchanges BSE and NSE tentatively on October 13.
The IPO comprises fresh issuance to the tune of Rs 6,846 crore and an offer for sale (OFS) worth Rs 8,666 crore wherein existing shareholders Tata Sons and International Finance Corporation will offload 26.58 crore shares.
Under the IPO, Tata Capital shares will be available for bidding in a price range of Rs 310 to Rs 326 in multiples of 46 units (lot size).
After the listing, Tata Capital is set to rival NBFCs like Bajaj Finance, L&T Finance, and Shriram Finance in the listed space.
