Tata Capital’s initial public offering (IPO) is expected to see strong demand from institutional investors, with its anchor book likely to be subscribed at least four times over, sources have told Moneycontrol.
A diverse mix of global funds and large domestic institutions are likely to participate in the anchor book of the biggest initial public offering (IPO) of the year.
Life Insurance Corporation of India, ICICI Prudential Mutual Fund, HDFC Mutual Fund and Axis AMC are among the domestic investors likely to participate, sources said.
Emails sent to Tata Capital, LIC and HDFC MF had not elicited a response till the time of publication. Axis MF and ICICI Prudential MF spokespersons declined to comment.
The anchor book opens October 3 and the IPO will be available for subscription to public from October 6 to October 8. Of the issue size of about Rs 15,512 crore, 30 percent is set aside for anchor investors.
Based on early indications, the anchor portion is likely to see interest of over Rs 21,000 crore at the upper end of the IPO price band, sources added.
The price band of the offer has been fixed at Rs 310 to Rs 326 per equity share.
The IPO consists of an offer for up to 475.82 million shares, including a fresh issue of up to 210 million shares and an offer for sale (OFS) of up to 265.82 million shares.
At the upper end of the price band, the fresh issue of shares will see the NBFC raise Rs 6,846 crore.
As part of the offer for sale, promoter Tata Sons Private Limited is selling up to 230 million shares (Rs 7,498 crore) and International Finance Corporation up to 35.82 million shares (Rs 1,168 crore).
Also Read: Non-lending businesses like private equity and wealth are accretive to Tata Capital: Rajiv Sabharwal
While allocations will only be finalised closer to the opening of the IPO, sources said the response to anchor round could offer a strong foundation for the broader offer and would be seen as a sign of deep institutional conviction in Tata Capital’s fundamentals and long-term prospects.
Kotak Mahindra Capital, Axis Capital, BNP Paribas, Citigroup, HDFC Bank, HSBC, ICICI Securities, IIFL Capital, JP Morgan and SBI Capital Markets are the lead managers to the IPO.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
