Tata Capital's IPO is creating a buzz before opening
Tata Capital IPO: Tata Capital, the Tata Group's NBFC company, has raised ₹4,642 crore from anchor investors, with LIC placing the largest stake of ₹700 crore, representing 15.08% of the anchor book. LIC was allotted 2,14,72,386 shares.
Retail investors will be able to place their bets starting October 6.
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According to company filings, other investors include Nomura India Investment Fund Mother Fund (3.77%), Nomura India Investment Fund Mother Fund (3.77%), and Morgan Stanley Investment Funds Asia Opportunity Fund (3.15%). Additionally, Norway's wealth fund, Government Pension Fund Global, has been allotted ₹125 crore (2.69%) of equity. The shares were allotted at the upper price band of ₹310-326 per share.
Who are anchor investors?
Anchor investors typically include institutions, mutual funds, or pension funds. They are also known as qualified institutional buyers (QIBs). The participation of anchor investors in an IPO has several benefits, including boosting investor confidence. Since a large fund is raised before the IPO opens, other investors are encouraged to invest.
This increases stability and helps set a price band for the stock, ensuring a good listing price.
Which companies participated in the anchor book?
Investors like SBI Life Insurance, SBI General Insurance, HDFC Life Insurance, Aditya Birla Sun Life Insurance, ICICI Lombard General Insurance, Bharti AXA Life Insurance, Canara HSBC Life Insurance, Navi General Insurance and Reliance General Insurance participated in the anchor book.
Also Read: Tata Capital Raises Rs.4,641 Crore from Anchor Investors Ahead of IPO
Summary
Apart from these, 18 domestic mutual fund houses including ICICI Prudential MF, HDFC AMC, Aditya Birla Sun Life AMC, DSP MF, Axis Mutual Fund, Whiteoak Capital, Nippon Life, Mahindra Manulife, Edelweiss, Kotak Mahindra AMC, Motilal Oswal AMC, UTI AMC, Bandhan MF, Baroda PNB Paribas MF, Invesco India, Mirae Asset and PGIM India together bought 5.06 crore shares of Tata Capital for Rs 1,650.4 crore.
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