Tata Capital has announced the dates for its highly anticipated IPO.
The subscription will open on October 6 and close on October 8. Anchor investors can start bidding from October 3.
This IPO will be the largest of the year, with an estimated size of around ₹17,200 crore.
The IPO will include new shares as well as an Offer for Sale (OFS) by existing shareholders.
Tata Capital will issue 21 crore new shares, while current shareholders will sell 26.58 crore shares, making a total of 47.58 crore shares available to the public.
Of the OFS, Tata Sons Private Limited will sell 23 crore shares, and the International Finance Corporation (IFC) will sell over 3.58 crore shares.
Share Pricing, Banks, and Market Performance
The final issue price will be announced later.
According to the updated Draft Red Herring Prospectus (UDRHP), Tata Capital’s average cost per share is ₹34, while IFC acquired shares at ₹25 each.
Several large banks and financial institutions are managing this IPO, including Kotak Mahindra Capital, Axis Capital, BNP Paribas, HDFC Bank, HSBC, ICICI Securities, IIFL, J.P. Morgan, and SBI Capital Markets.
The registrar for the issue is MUFG Intime India Private Limited.
Currently, unlisted Tata Capital shares are trading between ₹650 and ₹735 per share, according to Wealth Wisdom and Unlisted Zone.
Earlier in April, the share price had peaked at ₹1,125, but it has now dropped about 35% to ₹735.
Experts explain the decline: Prashant Tapase from Mehta Equities notes that falling markets, weaker NBFC performance, macroeconomic concerns, and cautious investors contributed to the drop.
Tarun Singh of Highbrow Securities says that in the unlisted market, low liquidity often causes rapid price fluctuations.
