Good news for Noel Tata, on first itself Tata Capital IPO subscribed by…, know issue date, price range, listing date

Tata Capital is expected to make its stock market debut on October 13.

Tata Capital Ltd’s initial public offering (IPO) was subscribed 39% on the first day of bidding on Monday.

According to NSE data, the issue received bids for 12.86 crore shares against the 33.34 crore shares on offer. The quota reserved for Qualified Institutional Buyers (QIBs) saw 52% subscription, while the Retail Individual Investors (RIIs) category garnered 35%. The non-institutional investors’ segment drew 29% bids.

Ahead of the IPO opening, Tata Capital had raised Rs 4,642 crore from 68 domestic and global institutional investors on Friday through its anchor book, which witnessed demand nearly five times the allocation size.

Tata Capital IPO: Issue Date, Price Band

The company’s Rs 15,512 crore public offering will conclude on October 8 and is in a price range of Rs 310-326 per share. At the top end of the band, the non-banking financial company (NBFC) commands a valuation of about Rs 1.38 lakh crore.

The initial public offer (IPO), comprising a total of 47.58 crore shares, includes a fresh issue of 21 crore equity shares and an Offer For Sale (OFS) of 26.58 crore shares.

Under the OFS component, Tata Sons will offload 23 crore shares, while the International Finance Corporation (IFC) will divest 3.58 crore shares. Currently, Tata Sons holds an 88.6 per cent stake in Tata Capital, while IFC owns a 1.8 per cent holding.

Tata Capital IPO: How Amount Will Be Utilised?

Proceeds from the IPO will be used for the company’s Tier-1 capital base, to support future capital requirements, including onward lending. This will help Tata Group’s second public listing in recent years, after the debut of Tata Technologies in November 2023.

The IPO is being undertaken in line with the Reserve Bank of India’s (RBI) listing mandate for upper-layer NBFCs, which requires them to be listed within three years of classification. Tata Capital was designated as an upper-layer NBFC in September 2022.

With a portfolio of more than 25 lending products, the company has a diverse customer base of salaried and self-employed individuals, entrepreneurs, small businesses, SMEs, and corporates.

In addition to lending, Tata Capital distributes third-party products such as insurance and credit cards, offers wealth management services, and acts as a sponsor and investment manager to private equity funds.

(With Inputs From PTI)