Tata Capital IPO subscribed 75% on Day 2; check latest GMP

The initial public offer of non-banking financial company Tata Capital Ltd received 75% subscription on the second day of bidding on October 7.

The IPO got bids for 24,85,50,604 shares against 33,34,36,996 shares on offer, according to details available with the NSE.

The quota for Qualified Institutional Buyers (QIBs) got subscribed 86%, while the category for Retail Individual Investors (RIIs) received 67% subscription. The portion meant for non-institutional investors attracted 75% subscription. The employee portion got booked 194%.

Tata Capital on Friday collected Rs 4,642 crore from 68 domestic and global institutional investors, with the anchor book witnessing demand nearly five times higher than the allocated amount.

Tata Capital IPO details

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% stake in Tata Capital, while IFC owns a 1.8% holding.

Proceeds from the IPO will be used to strengthen the company's Tier-1 capital base, supporting future capital requirements, including onward lending.

This will mark Tata Group's second public listing in recent years, following 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 caters to a diverse customer base, including 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.

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

Tata Capital GMP

According to InvestorGain, the Grey Market Potential (GMP) of Tata Capital stood at Rs 12.5 as of October 7, 10:55 am. The estimated listing price is expected to be Rs 338.5 based on the upper price band of Rs 326. The expected percentage gain per share is 3.83%.

With inputs from PTI