Tata Capital's ₹15,500cr IPO fully subscribed on final day
What's the story
Tata Capital's ₹15,500 crore initial public offering (IPO) has been fully subscribed on the third and final day of bidding. The response was mainly led by qualified institutional buyers (QIBs). As of 11:45am today, bids were received for 33.48 crore shares against the 33.34 crore shares available for subscription, according to data from National Stock Exchange and Bombay Stock Exchange.
Offer details
Price band set at ₹310-326 per share
Tata Capital is offering a total of 47.58 crore equity shares in its IPO. This includes a fresh issue of 21 crore shares and an offer-for-sale of 26.58 crore shares by promoter Tata Sons and investor International Finance Corporation (IFC). The price band for the public issue has been set at ₹310-326 per share, valuing the company at about ₹1.38 lakh crore at upper end.
Subscription rates
Strong interest across investor categories
The QIB portion of Tata Capital's IPO was subscribed 1.19 times, led by mutual funds and foreign investors. The NII portion was subscribed 1.11 times while the retail investor segment was subscribed 0.84 times as of today morning. The employee quota also witnessed strong participation at a subscription rate of 2.33 times, indicating robust interest across various investor categories in Tata Capital's public issue.
Market outlook
Analysts cautious on near-term returns
Analysts are optimistic about Tata Capital's long-term prospects but are wary of near-term returns. SBI Securities noted a dip in return ratios in FY25 due to merger losses, although profitability is expected to improve as the vehicle-finance subsidiary turns profitable. The IPO will close for subscription later today with share allotment expected by October 9 and listing likely on BSE and NSE on October 13.