Tata Capital Shares List at Small Premium After Tepid IPO Response
Tata Capital Ltd. listed at a small premium over its IPO price on Monday, becoming the 17th Tata Group company to be publicly traded. The share price opened at Rs 330 on both the NSE and BSE, compared to the issue price of Rs 326.
Initial Public Offering (IPO) Details
The initial public offering of Tata Capital was oversubscribed 1.95 times on the third and final day of bidding on Oct. 8. The IPO received bids worth Rs 21,230 crore against an offer of Rs 15,511.87 crore.
The Qualified Institutional Buyers (QIBs) booked the issue 3.42 times. The Non-Institutional Investors’ (NIIs) category was subscribed 1.98 times. Retail investors booked their quota 1.10 times.
Tata Capital IPO Composition
Tata Capital IPO was a book build issue of Rs 15,511.87 crore. It comprised a fresh issue of 21 crore shares worth Rs 6,846 crore and an offer-for-sale (OFS) of 26.58 crore shares amounting to Rs 8,665.87 crore.
The company will use proceeds from the IPO to augment its Tier–I capital base to meet future capital requirements, including onward lending. Further, a portion of the proceeds from the fresh issue will be used towards meeting offer expenses.
Analysts’ Views and Recommendations
Domestic brokerage house Emkay Global initiated coverage on the stock with an ‘Add’ rating and a 12-month price target of Rs 360, a 10% potential upside over the IPO price.
Analysts at Master Capital Services Ltd. suggested IPO investors hold the stock for long-term and those who didn’t get shares in the allotment can purchase when the price goes down.
Tata Capital’s Growth Path
Tata Capital has steadily chartered its own growth path in this ecosystem. As Managing Director and CEO Saurabh Agrawal said during the listing ceremony at the NSE in Mumbai, ‘It took us 10 years to reach our first Rs 50,000 crore, but the latest Rs 50,000 crore was added in just one year.’
Tata Capital is defined by the breadth of its products and its best-in-class asset quality. To learn more about Tata Capital IPO and its implications on the Indian stock market, visit our website.
Indian Stock Market Overview
The Indian stock market has been witnessing significant fluctuations in recent times. To stay updated on the latest market trends and news, check out our article on Indian stock market news.
Investing in the Indian Stock Market
Investing in the Indian stock market can be a lucrative option for those who are well-versed with the market trends and dynamics. To learn more about investing in the Indian stock market, read our detailed guide.
Conclusion
In conclusion, Tata Capital’s listing at a small premium over its IPO price marks a significant milestone for the company. As the Indian stock market continues to evolve, it is essential for investors to stay informed and up-to-date on the latest market trends and news.
To get the latest updates on the Indian stock market, including Nifty today and Sensex news, visit our website regularly.
