Mumbai, Oct 13 – Tata Capital’s stock opened almost unchanged on its first day of trading, finishing at Rs 331.10, or 1.56 % higher than the IPO price of Rs 326. The shares were just a touch above the listing price, reflecting a modest lift from the market.
Earlier in the morning, the shares of the Tata Sons‑owned financial services subsidiary opened at Rs 330 on both the NSE and the BSE, trading 1.23 % above the issue price. Investors had a very flat reaction in the unlisted overnight market, where the share price hovered at Rs 326.
The main IPO raised Rs 15,511 crore. Tata Capital offered 210 million new equity shares and a sell‑off of 265.8 million shares, priced between Rs 310 and Rs 326. The public response was lukewarm, with an overall subscription of 1.95 times. Qualified institutional buyers were the most enthusiastic, subscribing 3.42 times, followed by non‑institutional investors at 1.98 times and retail investors at just 1.10 times.
Tata Capital was classified as a top‑tier NBFC (non‑banking financial company) in September 2022. The listing now meets the Reserve Bank of India’s rule that such firms must go public within three years of being classified as upper‑layer NBFCs.
Domestic brokerage firms have given the shares an “Add” rating and a target price of Rs 360, based on a 2.9‑times estimated FY27 price‑to‑book ratio. They point to strong growth potential and the backing of the Tata Group. Roughly 80 % of Tata Capital’s loan book is secured, with retail finance making up about 61 % of total lending.
From FY22 to FY24, Tata Capital grew assets under management by 31 % year‑on‑year. Its return on assets (RoA) and return on equity (RoE) averaged 2.3 % and 18 % in FY23 and FY24.
The money raised from the IPO will boost Tata Capital’s Tier‑1 capital, helping the company expand its lending and support future growth.
Source: ianslive
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