Shares of non-banking financial company Tata Capital made a muted debut on the bourses today. This marks Tata Group's second public listing in recent years, following the debut of Tata Technologies in November 2023. Earlier on Friday, the NBFC collected Rs 4,642 crore from 68 domestic and global institutional investors, with the anchor book witnessing demand nearly five times higher than the allocated amount.
Tata Capital Shares Listing On NSE, BSE Highlights:
"Tata Capital share was a non-impressive debut in the stock market on the exchanges over its initial public offering (IPO) price on Monday after a 1.96 times subscription in the primary market between October 6-8. Being a subsidiary of Tata Sons, Tata Capital becomes the largest diversified non-banking financial company in India at the third place. The company has lent out to 7.3 million customers since it started operations in 2007. Through a wide range of over 25 lending products, it has the potential for a long-term investment in India’s growing financial services sector due to its diverse business model and strong retail, corporate, and housing finance presence. Long-term holding of the stock should be considered by investors who received IPO. Meanwhile, those who didn’t get shares in the IPO can purchase when the price goes down," said Master Capital Services LTD.
Shares of Tata Capital traded flat on the BSE and NSE. Last seen, the stock was trading at Rs 330 on the BSE and 330.60 on the NSE.
"Listing was in line with our expectations, given the muted subscription demand and overall cautious investor sentiment. Despite valuations appeared reasonably when compared to its listed peers, the offer did not witness strong traction. Being Tata Capital’s strong brand equity under the Tata Group, its diversified business model, and robust presence across retail, corporate, and housing finance segments make it a compelling long-term play in India’s expanding financial services landscape. Tata Capital provides investors a credible and scalable proxy to participate in the broader NBFC growth cycle," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Last seen, the stock was trading at Rs 329.50 on the BSE and the market cap of the company stood at Rs 1,39,953.33 crore.
The stock of Tata Capital dropped post listing to touch the low of Rs 326.15.
Tata Capital, a leading NBFC, enjoys a diversified presence across retail and corporate lending, wealth management, and other financial services. The company’s fundamentals remain sound with steady growth and strong parentage, but valuations were seen as fair, leaving limited room for listing-day excitement. According to Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, investors may consider booking partial profits near listing levels while holding some shares for the long term, as the company’s growth prospects remain attractive in India’s expanding financial services sector.
Considering the near-term operational challenges, Choice brokerage firm had assign a “Subscribe for Long Term” rating to the issue.
TATA Capital Ltd. (TCL), the flagship financial services arm of the Tata Group and a wholly owned subsidiary of Tata Sons Pvt. Ltd., is categorised by the RBI as an Upper Layer NBFC.
Ahead of the listing, the shares of Tata Capital were trading at a Rs 0 premium in the grey market. This indicated that the share price was likely to witness a muted listing at the IPO price of Rs 326.
On the BSE, the shares were listed at Rs 330 per share, a premium of 1.23 per cent.
In the pre-opening session, Tata Capital shares settled at Rs 330 on the NSE, a premium of 1.23 per cent to the issue price of Rs 326.
The price range for the initial public offering of Tata Capital is Rs 310-326 per share.
Tata Capital on Friday collected Rs 4,642 crore from 68 domestic and global institutional investors, with the anchor book witnessing demand nearly five times higher than the allocated amount.
The quota for Qualified Institutional Buyers (QIBs) got subscribed 3.42 times, while the portion meant for non-institutional investors received 1.98 times subscription. The Retail Individual Investors (RIIs) category received 1.10 times the subscription.
Tata Capital's IPO is the largest issue of this year. The company's Rs 15,512 crore share sale received bids for 65,12,29,590 shares against 33,34,36,996 shares on offer, translating into 1.95 times subscription.
The initial public offering (IPO) of non-banking financial company (NBFC) Tata Capital Ltd got fully subscribed on the final day of bidding on Wednesday.
