Tata Capital Raises Rs.4,641 Crore from Anchor Investors Ahead of IPO
Tata Capital has secured Rs.4,641 crore from anchor investors ahead of its Initial Public Offering (IPO). The IPO committee allotted 14.23 crore equity shares at Rs.326 per share — including a premium of Rs.316 on a face value of Rs.10. This anchor investment accounts for nearly 30% of the Rs.15,511 crore IPO, showcasing the strong confidence investors have in the company’s growth story.
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Strong Institutional Demand
The IPO drew remarkable demand from top global and domestic investors. LIC emerged as the biggest anchor, picking up 2.14 crore shares — a solid 15% of the total anchor allocation. Other high-profile names included Morgan Stanley, Goldman Sachs, Amansa Holdings, Nomura, and Government Pension Fund Global, underscoring Tata Capital’s global appeal.
Mutual Funds’ Big Bet
Domestic mutual funds also made their presence felt, grabbing 5.06 crore shares — about 36% of the anchor book. A total of 59 schemes from 18 leading fund houses participated, including HDFC, ICICI Prudential, SBI, Kotak, and Axis. Their strong involvement highlights the long-term confidence of India’s financial sector in Tata Capital’s robust fundamentals.
Tata Group’s Largest IPO
Tata Capital’s Rs.15,511 crore IPO marks the largest-ever offering by any Tata Group company and also the biggest among NBFCs. The public issue opens on October 6 and closes on October 8, priced between Rs.310 and Rs.326 per share. This values the company at Rs.1.32–1.38 lakh crore. Investors can bid for a minimum of 46 shares per lot.
Structure and Fund Utilisation
The IPO comprises 47.58 crore shares, including 21 crore fresh issues and a 26.58 crore Offer for Sale (OFS), leading to an overall 11% equity dilution. Tata Sons will offload 23 crore shares, while IFC will sell 3.58 crore shares. The proceeds from the fresh issue will strengthen Tata Capital’s Tier-I capital base, while funds from the OFS will go to the selling shareholders.
Valuation and Market Buzz
Interestingly, the IPO’s floor price aligns with Tata Sons’ rights issue held earlier this year, which was significantly below the soaring grey-market rates that once touched over Rs.1,000 before market volatility hit. This strategic pricing could make the IPO even more attractive to retail and institutional investors alike.
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