Tata Capital’s $1.7 billion IPO attracts Counterpoint, White Oak

Tata Capital will start taking orders from the broader public from Monday, with shares being offered at 310 rupees to 326 rupees apiece through Wednesday.

Tata Capital’s $1.7 billion initial public offering attracted investors ranging from Morgan Stanley’s Counterpoint Global to local mutual funds as early big investors, according to people familiar with the matter.

WCM Investment Management, Goldman Sachs Asset Management, White Oak Capital Partners and Nomura Asset Management also placed bids to be anchor investors, the people said, asking not to be identified because the details haven’t been made public. Nine of India’s top 10 mutual funds participated, they said.

Tata Capital and the funds didn’t immediately respond to requests for comment.

The listing is set to be the country’s largest since Hyundai Motor India Ltd.’s $3.3 billion offering last year, and comes as the nation heads into what could be a record month for IPOs.

Tata’s offering will involve the sale of as many as 475.8 million new and existing shares by Tata Capital, its parent and International Finance Corp., according to the IPO prospectus.

Tata Capital will start taking orders from the broader public from Monday, with shares being offered at 310 rupees to 326 rupees apiece through Wednesday. That would value the shadow lender at high as 1.4 trillion rupees ($15.7 billion). The shares are scheduled to begin trading on Oct. 13.

Of the total number of shares being sold in the IPO, half will be earmarked for qualified institutional buyers, 35% for retail investors and the rest for non-institutional investors, including wealthy individuals. As much as 60% of the institutional portion can be allocated to anchor investors, according to the prospectus.