Tata Capital Ltd Rs 15,512 crore initial public offering (IPO) got subscribed 39 per cent on the first day of the opening of the subscription on Monday, led by higher demand from qualified institutional buyers (QIBs) and retail investors. QIBs placed bids for 4.94 crore shares as against 9.49 crore offered to them, showing a subscription level of 52 per cent. Retail individual investors portion saw a subscription 35 per cent, with 5.75 crore bids received as against 16.61 crore shares on offer.
Non institutional investors (NII) placed bids for 2.04 crore shares compared to 7.12 crore shares offered. Ahead of the opening of the IPO, Tata Capital raised Rs 4,641.8 crore from 135 anchor investors, including Life Insurance Corporation of India, Goldman Sachs and Morgan Stanley.
Tata Sons-backed non-banking financial company (NBFC), Tata Capital Ltd IPO consists of a combination of fresh issuance and an offer for sale (OFS), totalling around 47.58 crore equity shares of face value of Rs 10 each. The company will be issuing up to 21 crore new shares, amounting to Rs 6,846 crore, and the existing shareholders are looking to offload up to 26.58 crore shares, aggregating to Rs 8,666 crore. Through the issue, Tata Sons, the company’s promoter holding 88.6 per cent share in Tata Capital, is selling up to 23 crore shares, while International Finance Corporation (IFC) is divesting up to 3.58 crore shares.
The price band for the IPO, which is the largest offering so far in this year, has been set in the range of Rs 310-326 crore. At the upper price band, the company is valued at around Rs 1.38 lakh crore. Tata Capital’s IPO is the fourth largest public offering in the history of the domestic capital markets and stands as the biggest-ever in the NBFC space in the country. It is also the second public offering from the Tata Group in nearly two decades, following Tata Technologies’ Rs 3,043 crore IPO in November 2023.