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Journalism of Courage
Tata Capital Listing Price: Shares of Tata Capital Ltd, the flagship financial company of the Tata Group, made a lackluster debut on stock exchanges, listing at a premium of 1.23 per cent both on the BSE and NSE.
The company’s shares opened at Rs 330 apiece on the BSE and closed at Rs 330.40 a share, up 1.35 per cent compared to the upper price band of the initial public offering (IPO) of Rs 326 per equity shares. On NSE, shares closed at Rs 331.1 per share, up 1.56 per cent, after opening at Rs 330 apiece.
Tata Capital’s mega Rs 15,512 crore IPO closed for subscription on October 8.
“Listing was in line with our expectations, given the muted subscription demand and overall cautious investor sentiment. Despite valuations appeared reasonable when compared to its listed peers, the offer did not witness strong traction,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Being Tata Capital’s strong brand equity under the Tata Group, its diversified business model, and robust presence across retail, corporate, and housing finance segments make it a compelling long-term play in India’s expanding financial services landscape, he said.
Market experts have set a price target of Rs 360 per share, around 10 per cent over the IPO’s upper band price, over the short to medium-term.
“We recommend allotted investors HOLD for the long term, given the company’s structural strengths and growth potential, while acknowledging short-term market risks,” Tapse said.
Non-allotted investors should adopt a ‘wait and watch’ approach. They should monitor the stock post-listing, and consider accumulating on any meaningful dip, he said.
Tata Capital’s public issue is the largest offering so far in this year. It was subscribed 1.95 times, with the retail portion getting subscribed 1.1 times, while qualified institutional buyers (QIB) category saw a strong subscription of 3.42 times.
The 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.
