Tata Capital could not make its ‘dream debut’ in the stock market, started flat

The debut of Tata Capital IPO in the stock market was quiet.

As was expected, Tata Capital’s ‘dream debut’ in the stock market could not happen. Shares of Tata Capital made a slow debut on the stock markets on Monday and were listed at Rs 330 with a premium of 1.2 per cent on both BSE and NSE. The upper price band of the company’s shares was Rs 326. The Rs 15,512 crore Tata Capital IPO was fully subscribed 1.95 times led by qualified institutional buyers (QIBs). Retail investors (RIIs) subscribed 1.10 times and NIIs subscribed 1.98 times. On the other hand, QIB booked its allotted shares 3.42 times.

This Tata Group NBFC had set the price band of the IPO between Rs 310 and Rs 326 per share, which was 56 per cent lower than the unlisted shares of the company. A minimum lot of 46 shares was required for application.

The proceeds from the new issue will be used to strengthen Tata Capital’s Tier-I capital base, support its future loan capacity and overall growth. Between FY2023 and FY2025, the company reported 56 per cent growth in revenue, while PAT increased by 10 per cent to Rs 3,655 crore.

Company listing remained quiet

The listing of Tata Capital has been seen quite quiet. The company’s shares were listed on BSE at Rs 330, which was Rs 4 more than its issue price. The special thing is that the company’s shares reached a new level at Rs 332. After that, profit booking in the company’s shares stopped. At present i.e. at 10.40 am, the company’s share is trading at Rs 329.40 with a decline of 0.18 percent, whereas during the trading session the company’s share also went up to Rs 326.15. The special thing is that the company’s shares are still trading above its issue price. Also, the valuation of the company is seen at around Rs 1.40 lakh crore.

Tat Capital’s share was also listed at Rs 330 on Nifty, the main index of the National Stock Exchange, which reached the day’s high at Rs 332. At present, the company’s shares seem to be trading flat, which is much above its issue price. During the trading session the company’s shares also touched the day’s low of Rs 326.25. Earlier, the gray market premium (GMP) on Tata Capital shares was continuously falling, which fell from Rs 8 before the opening of the IPO to Rs 5 in the last record session.

Anchor investors reaction

Ahead of its IPO, Tata Capital raised Rs 4,642 crore from anchor investors, which saw strong interest from both domestic and global institutions. LIC emerged as the biggest anchor, buying 2.15 crore shares worth about Rs 700 crore. Significant allocations were also made to top mutual funds and asset managers including ICICI Prudential, HDFC Mutual Fund, Aditya Birla Sun Life, DSP, Axis, Kotak and Nippon Life AMC. Internationally, major investors included Morgan Stanley, Goldman Sachs, Nomura and Norway’s sovereign wealth fund, Government Pension Fund Global.

stock market crash

On the other hand, there is a decline in the overall stock market. If we look at the data, BSE’s main index Sensex is trading at 82,254.38 points with a fall of 253 points at 10.48 am. Whereas during the trading session, Sensex saw a fall of more than 450 points and was seen at 82,043.14 points. Whereas last week the Sensex had seen an increase of more than 1.50 percent. On the other hand, the main index of National Stock Exchange, Nifty, is also seeing a decline of about 81 points at 10:49 am and is trading at 25,202.75 points. Whereas during the trading session, Nifty fell by more than 130 points and reached 25,152.30 points.

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