Early signs suggest that the high end of the pricing range would likely see interest in the anchor piece of above Rs 21,000 crore. On October 3, the anchor book opens, and on October 6, the IPO begins.
According to individuals who spoke to Moneycontrol, institutional investors are anticipated to show a high level of interest in Tata Capital’s IPO, with its anchor book probably being subscribed for at least four times over.
The largest initial public offering (IPO) of the year is anticipated to have a varied anchor book that includes both huge local institutions and a variety of international entities.
Axis AMC, HDFC Mutual Fund, ICICI Prudential Mutual Fund, and Life Insurance Corporation of India are among of the domestic investors anticipated to take part, according to sources.
As of the time of publishing, emails to HDFC MF, LIC, and Tata Capital have not received a response. Spokesman for ICICI Prudential MF and Axis MF chose not to comment.
The public may subscribe to the IPO from October 6 to October 8, and the anchor book opens on October 3. Thirty percent of the approximately Rs 15,512 crore offering size is reserved for anchor investors.
According to insiders, early indications suggest that the anchor part would likely attract interest at the top end of the IPO price range of more than Rs 21,000 crore.
The offer’s price range is Rs 310 to Rs 326 for each equity share.
The initial public offering (IPO) includes an offer for sale (OFS) of up to 265.82 million shares and a fresh issuance of up to 210 million shares, for a total offer of up to 475.82 million shares.
The NBFC would raise Rs 6,846 crore via the new share issuance at the top end of the pricing range.
Promoter Tata Sons Private Limited is offering up to 230 million shares (of Rs 7,498 crore) and International Finance Corporation is offering up to 35.82 million shares (worth Rs 1,168 crore) as part of the sale.
According to insiders, the response to the anchor round might provide a solid basis for the larger offer and would be seen as an indication of strong institutional confidence in Tata Capital’s fundamentals and long-term prospects, even if allocations will not be finalized until closer to the IPO’s debut.
The IPO’s principal managers include Kotak Mahindra Capital, Axis Capital, BNP Paribas, Citigroup, HDFC Bank, HSBC, ICICI Securities, IIFL Capital, JP Morgan, and SBI Capital Markets.