Tata Capital, a non-banking financial company, raised ₹4,642 crore from 68 institutional investors, both domestic and international, with the anchor book experiencing demand nearly five times greater than the amount allocated. This comes shortly before its anticipated ₹15,512 crore initial public offering (IPO) opens for subscription. The anchor round saw strong interest from various institutional investors, including the Life Insurance Corporation of India (LIC), ICICI Prudential Mutual Fund, Nippon India Mutual Fund, Motilal Oswal Mutual Fund, Amansa Holdings, Nomura, Morgan Stanley, Government Pension Fund Global, and Goldman Sachs, as noted in a circular posted on the BSE website.
Tata Capital has issued 14.24 crore equity shares to anchor investors at a price of ₹326 each, bringing the total transaction size to ₹4,642 crore. The diverse range of participants, which includes domestic mutual funds, sovereign funds, insurers, and foreign portfolio investors (FPIs), highlights the broad appeal of Tata Capital’s financial services model. Market sources indicated that due to strong demand, investors were unable to acquire the desired stake in the company and had to settle for a limited subscription. The public offering will be available for subscription from October 6 to 8, with a price band set between ₹310 and ₹326 per share.
At the upper end of this range, the non-banking financial company (NBFC) is valued at approximately ₹1.38 lakh crore. The IPO comprises a total of 47.58 crore shares, which includes a new issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares. In the OFS segment, Tata Sons will sell 23 crore shares, while the International Finance Corporation (IFC) will divest 3.58 crore shares. Presently, Tata Sons holds an 88.6% stake in Tata Capital, while IFC has a 1.8% ownership. The IPO proceeds are intended to enhance the company’s Tier-1 capital base, facilitating future capital needs, including ongoing lending.
Tata Capital, the financial services division of the Tata Group, previously submitted draft documents in April through a confidential pre-filing process and received approval from the market regulator, Sebi, in July. This IPO will represent Tata Group’s second public listing in recent years, following the launch of Tata Technologies in November 2023. This listing is in accordance with the Reserve Bank of India’s (RBI) mandate for upper-layer NBFCs to be publicly listed within three years of being classified. Tata Capital was categorized as an upper-layer NBFC in September 2022. For the fiscal year 2024-25, Tata Capital reported a profit after tax of ₹3,655 crore, an increase from ₹3,327 crore in FY24.