Tata Investment Corporation shares surged 12 percent to a record high on Friday, extending their winning streak for the fifth straight session, ahead of the opening of Tata Capital’s initial public offering (IPO) next week.
The stock climbed 11.98 percent to touch an intraday peak of Rs 11,847 apiece on the NSE. It has gained nearly 35 percent since September 26, when Tata Capital fixed the IPO date. However, shares pared the early gains to trade lower at Rs 10,075 per share on the NSE, down 4.77 percent.
Tata Investment Corp owns 2.2 percent of Tata Capital. And Tata Sons holds nearly 93 percent stake in the non-bank lender.
Investor sentiment was buoyed by optimism that the Tata Capital IPO may unlock value and boost the group’s presence in the listed financial services space.
Investor sentiment has also been buoyed by Tata Investment Corporation decision to split its shares in the ratio of 1:10. The record date for the stock split has been fixed as October 14. Post-split, the face value of each share will be reduced from Rs 10 to Re 1, a move aimed at improving liquidity and making the stock more affordable for retail investors.
Tata Capital, a non-banking financial company of the Tata Group, is launching its Rs 15,512-crore IPO on October 6, with subscriptions closing on October 8. The price band has been set at Rs 310-326 per share, valuing the company at about Rs 1.38 lakh crore at the upper end. The anchor book bidding will open on October 3.
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