On the very first day, the IPO of Tata Capital has received quite cold response.
Tata Capital IPO, the country’s largest IPO, received cold response on the first day. The most disappointed by retail investors, who put less than 50 percent of the bolia. QIB’s figure was more than 50 percent of the figure. By the way, the company has already raised more than 4600 crore rupees to anchor investors. According to experts, there is still two days left to subscribe to the IPO. On the other hand, the IPO of LG Electronics India is being launched from Tuesday, October 7. Whose size is more than 11 thousand crore rupees. In such a situation, Tata Capital IPO can get a big challenge. Let us also tell you what kind of response has been received from all the categories of Tata Capital IPO.
IPO gets cold response
The IPO of non-banking finance company Tata Capital Limited received 39 per cent bids on the first day of bid on Monday. Which can be called a very cold response in terms of Tata Group. According to the information available on NSE, the IPO received bids for 12,86,08,916 shares against 33,34,36,996 shares. In the case of the eligible institutional buyers (QIB), 52 percent of the subscriptions were received, while the category of retail individual investors (RII) received 35 percent dialects. The prescribed portion for non-institutional investors received 29 percent of the subscriptions. Tata Capital on Friday raised Rs 4,642 crore from 68 domestic and global institutional investors.
An investment opportunity till 8 October
The company’s public issue of Rs 15,512 crore will end on October 8 and its price limit is Rs 310-326 per share. The evaluation of this non-banking financial company (NBFC) is about Rs 1.38 lakh crore at the top level. This initial public issue (IPO), with a total of 47.58 crore shares, includes a new issue of 21 crore equity shares and a sales offer of 26.58 crore shares (OFS). Under the sales offer, Tata Sons will sell 23 crore shares while the International Finance Corporation (IFC) will sell 3.58 crore shares.
Tata Sons’s big stake
Currently, Tata Sons holds 88.6 percent stake in Tata Capital, while IFC holds a 1.8 percent stake. The amount received from the IPO will be used to strengthen the company’s Tier-1 capital ie share capital base and to meet future capital requirements including further borrowings. After the arrival of Tata Technologies in November 2023, this will be the second public listing of the Tata group in recent years.