Tata Capital IPO: NBFC’s Shares Make Muted Debut, List With 1% Premium On NSE, BSE

Tata Capital IPO Listing Price: Shares of Tata Capital Ltd listed on the NSE and BSE on October 13. Shares of the non-banking finance company made a muted debut on the exchanges. Tata Capital shares listed with over 1 per cent premium compared to the issue price.

On the NSE, Tata Capital shares made their debut at Rs 330 per share with gains of 1.2 per cent against the issue price of Rs 326 piece. Shares of Tata Capital listed at Rs 330 apiece with 1.2 per cent gains on the BSE as well. At the time of writing 35.69 million shares of Tata Capital traded hands on the NSE. Tata Capital’s total market capitalisation stood at Rs 1,40,080.68 crore.

Applicants who applied for Tata Capital IPO in the retail category and were allotted a minimum of one lot or 46 shares would have made gains of at least Rs 184 (Rs 330 - Rs 326 x 46).

Tata Capital IPO: Details

Tata Capital Ltd raised Rs 15,511.87 crore through its public issue. Tata Capital IPO raised Rs 6,846 crore through a fresh issue of 210 million shares and Rs 8,665.87 crore through an offer-for-sale of 265.8 million shares. Tata Capital IPO price band was set between Rs 310 to Rs 326 per share.

The minimum lot size for application for retail investors was fixed at 1 lot comprising 46 shares, which aggregated to an investment of Rs 14,996. Tata Capital IPO saw modest demand in its three-day bidding window. Tata Capital IPO was booked 1.95 times cumulatively as applicants placed bids for 651.2 million shares compared to the 333.4 million shares offered for subscription.

Qualified institutional buyers led the demand for Tata Capital’s shares, booking the issue 3.42 times. Non-institutional investors booked their quota in Tata Capital IPO 1.98 times and retail individual investors booked their quota 1.1 times. Employees of Tata Capital booked their quota 2.92 times.

Tata Capital IPO: Objective

Tata Capital Ltd seeks to use the money raised via the public issue for augmenting its Tier –I capital base and meet the NBFC’s future capital requirements such as onward lending.

Tata Capital: Business Model

Tata Capital is a diversified NBFC and a part of the Tata conglomerate. The NBFC offers a diverse range of financial services and products across retail, Small and Medium Enterprise (SME), and corporate sectors. The company provides financial solutions through its subsidiaries such as Tata Capital Financial Services, Tata Capital Housing Finance, and Tata Cleantech Capital.

Tata Capital: Peers

Tata Capital has several listed peers in the NBFC space including Bajaj Finance, Shriram Finance, Cholamandalam Investment and Finance Company, L&T Finance Holdings, Sundaram Finance and the recently listed HDB Financial Services. Other competitors of the diversified NBFC include Manappuram Finance, IIFL Finance, Aditya Birla Capital and Mahindra & Mahindra Financial Services Ltd.

At the time of writing, Tata Capital shares traded at Rs 329.2 apiece down by 0.3 per cent on the NSE. Tata Capital shares traded at Rs 329.2 apiece on the BSE as well.