By October 9, the Tata Capital IPO allocation is expected to be finalized, and on October 13, the shares will be listed on the BSE and NSE.
A busy week is ahead for the main market as two significant businesses, Tata Capital and LG Electronics India, prepare to conduct their initial public offerings (IPOs), which will total over Rs 26,000 crore. The size of the dual offerings and the prominence of their parent companies likely to generate significant investor interest.
After the launch of Tata Technologies in November 2023, this will be the second public offering for the Tata Group in recent years.
Before you sign up for Tata Capital, a non-banking financial organization, you should be aware of the following important information:
1) Anchor investors: The business received Rs 4,642 crore from 68 institutional investors, both domestic and foreign, with demand for the anchor book being almost five times more than the amount allotted.
2) Issue size: Rs 15,512 crore is the overall issue amount of the IPO.
3) Dates of issue: The Tata Capital IPO will be available for subscription from October 6–8.
4) Price range: 310 to 326 rupees per share is the set price range.
5) Goal: By strengthening the company’s Tier-1 capital basis, the IPO proceeds will help meet future capital needs, such as more lending.
6) Important financials: Tata Capital declared a profit after tax (PAT) of Rs 3,655 crore for the fiscal year 2024–2025, up from Rs 3,327 crore for the fiscal year 2023–2024. Additionally, its sales increased significantly from Rs 18,175 crore in the previous fiscal year to Rs 28,313 crore in FY25.
7) IPO GMP: Platforms that monitor grey market activity indicate that the company’s shares are selling for about 2% GMP on the unregulated market. With a GMP of Rs 8 for the company’s shares, Investorgain predicted a 2.45% listing gain.
8) The anticipated date of allotment for the company’s shares is Thursday, October 9.
9) Listing date: Monday, October 13 is the planned day for the BSE and NSE to list shares.
10) Do you want to sign up?
The omni-channel distribution strategy, the broad product offerings, the solid parentage of the Tata Group, the conservative risk culture that results in steady asset quality, the high credit rating, and the varied liability profile are some of the salient features that the analysts at SBI Securities suggested.
Regarding its growth initiatives, the firm said that it is increasing its distribution network and expanding its product offerings in order to maintain the present development trajectory. In order to minimize borrowing costs and retain top people, the corporation keeps its credit rating high and its liability mix diverse.
Key concerns that the analysts also emphasized were loan concentration, exposure to unsecured loans, asset quality risk, and liquidity risk.