Tata Capital Shares Make Modest Debut At Rs 330; Should You Buy, Hold, Or Sell?

Tata Capital IPO: Shares of Tata Capital Limited made a modest debut on bourses on Monday. Stocks listed at Rs 330 at NSE with a gain of 1.23 per cent.

The Rs 15,512-crore initial public offering (IPO) of Tata Capital Ltd — the largest issue of the year so far — closed on Wednesday, October 8.  On the final day, the IPO was subscribed 1.96 times, receiving bids for 65.19 crore shares against the 33.34 crore shares available. Among investor categories, retail investors subscribed 1.10 times, non-institutional investors (NIIs) 1.98 times, and qualified institutional buyers (QIBs) 3.42 times.

Tata Capital, a leading non-banking financial company (NBFC), has set the price band at Rs 310-Rs 326 per share, valuing the company at around Rs 1.38 lakh crore

at the upper end of the band.

Tata Capital – Buy, Sell Or Hold?

Tata Capital made its market debut in the presence of top leaders from the Tata Group and the National Stock Exchange. Natarajan Chandrasekaran, Chairman of Tata Sons, Saurabh Agrawal, Chairman and Non-Executive Director of Tata Capital, and Rajiv Sabharwal, Managing Director and CEO of Tata Capital, attended the listing ceremony. Ashish Kumar Chauhan, Managing Director and CEO of the National Stock Exchange, was also present at the event, marking a significant milestone for Tata Capital as it entered the public markets.

Tata Capital IPO: More Details

The IPO, comprising a total of 47.58 crore shares, includes a fresh issue of 21 crore equity shares and an Offer For Sale (OFS) of 26.58 crore shares. At the upper price band, the issue is expected to raise Rs 15,512 crore.

Under the OFS component, Tata Sons will offload 23 crore shares, while the International Finance Corporation (IFC) will divest 3.58 crore shares.

Currently, Tata Sons holds an 88.6 per cent stake in Tata Capital, while IFC owns 1.8 per cent holding.

Proceeds from the IPO will be used to strengthen the company’s Tier-1 capital base, supporting future capital requirements, including onward lending.

Tata Capital, the financial services arm of the Tata Group, had earlier filed draft papers in April through the confidential pre-filing route and secured approval from market regulator Sebi in July.

This IPO will become the largest public issue in India’s financial sector. It will also mark the Tata Group’s second public listing in recent years, following the debut of Tata Technologies in November 2023.

The IPO is being undertaken in line with the Reserve Bank of India’s (RBI) listing mandate for upper-layer NBFCs, which requires them to be listed within three years of classification. Tata Capital was designated as an upper-layer NBFC in September 2022.