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Tata Capital's Rs 15,511-Crore IPO to Open Between Oct 6-8, Valued at Rs 1.32-1.38 Lakh Crore

Strategic Insights

— 2 min read

Tata Capital's initial public offering (IPO) is set to open on October 6th and close on October 8th, with anchor bids scheduled for October 3rd. The IPO, priced between Rs 310 and Rs 326 per share, values the company at Rs 1.32-1.38 lakh crore, making it the largest IPO by any non-banking financial company (NBFC) and the biggest ever by the Tata Group. The offer comprises 21 crore fresh shares and a 26.6 crore offer for sale (OFS), leading to 11% dilution.

Key Takeaways:

  • The Tata Capital IPO will be open between October 6th and October 8th, with anchor bids scheduled for October 3rd.
  • The IPO is priced between Rs 310 and Rs 326 per share, valuing the company at Rs 1.32-1.38 lakh crore.
  • The offer comprises 21 crore fresh shares and a 26.6 crore offer for sale (OFS), leading to 11% dilution.
  • Tata Sons will sell 23 crore shares, while the International Finance Corporation (IFC) will sell 3.6 crore shares.
  • The proceeds from the fresh issue will bolster Tata Capital's tier-1 capital, while the OFS money will go to selling shareholders.
  • The company expects credit to expand 11-12% if India grows at 6.5-7%, with retail and SME credit growing faster at 17-18%.
  • Tata Capital is in the segment witnessing the strongest growth in the industry.

Statistics:

  • The Tata Capital IPO is valued at Rs 1.32-1.38 lakh crore.
  • The offer comprises 47.6 crore shares, which is 11% of the company's equity.
  • The IPO will open on October 6th and close on October 8th, with anchor bids scheduled for October 3rd.
  • Tata Capital's tier-1 capital will be bolstered by the proceeds from the fresh issue.
  • The company expects credit to expand 11-12% if India grows at 6.5-7%.
  • Retail and SME credit is expected to grow faster at 17-18% over the same period.

Sources:

  • TIMES NEWS NETWORK Mumbai: Tata Capital's Rs 15,511-crore IPO
  • "For 18 years, we funded the business with our own capital and were happy with the returns. The IPO is driven by regulatory timelines, though we were glad to support its growth," said Saurabh Agarwal, group CFO Tata Sons and chairman Tata Capital.
  • "If India grows at 6.5-7%, credit will expand 11-12%. Retail and SME credit has been growing faster, at 17-18%. We are in the segment witnessing the strongest growth in the industry," said Rajiv Sabharwal, MD & CEO, Tata Capital.

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