Tata Capital IPO: A Major Market Move

Tata Capital Ltd's IPO was fully subscribed, receiving 1.95 times the offered shares, marking the largest issue of the year. With a fresh issue and Offer For Sale, proceeds will strengthen the company's capital. The IPO aligns with RBI's mandate for NBFCs and marks Tata's second recent public listing.

Tata Capital Ltd made headlines with its initial public offering (IPO) as it reached full subscription on the final day of bidding. Drawing bids for over 65 crore shares against the 33 crore on offer, the IPO saw 1.95 times subscription, making it the year's largest market issue.

The IPO, slated to strengthen Tata Capital's Tier-1 capital base, entails a fresh issue of 21 crore equity shares alongside an Offer For Sale of 26.58 crore shares. The funds are intended to support future capital needs and onward lending for the company, aligning with RBI's mandate for NBFCs to list within three years of being classified as an upper-layer NBFC.

Tata Capital's listing marks the second public debut for a Tata Group company in recent years, following Tata Technologies in November 2023. The company, expected to make its market entry on October 13, offers an extensive portfolio, including lending, wealth management, and distribution of financial products.

(With inputs from agencies.)