Tata Capital is ready to launch its initial public issue (IPO) in the first week of October. The IPO of the Tata Group’s NBFC company has filed the Red Hering Prospects (RHP) to release its offer in the primary market. The issue will open on 6 October Monday and is expected to close on 8 October.
In Tata Capital IPO, 21 crore equity shares will be kept for fresh cell and 26,58,24,280 equity will be introduced through offer for SEZ. In this issue, 47,58,24,280 in this issue will be for sale of equity shares. The face value of each share is 10 rupees.
The IPO of Tata Capital also has a reserve quota for eligible employees of the company, but there is no reservation for shares holders of Tata Investments or other Tata group companies. The details of the anchor book will be announced on Friday, October 3 and the price band for the IPO is likely to be announced on Monday, September 29.
17000 crores plan to raise
Tata Capital is planning to raise a total of $ 2 billion (Rs 17,000 crore) through its IPO. The Reserve Bank of India (RBI) has extended the time limit of Tata Group’s NBFC to be listed in the stock market. The last deadline for its entry into the stock market was ending on 30 September. The central bank had allowed Tata Capital to extend the time limit.
Price band not announced yet
According to non-listed market dealers, Tata can release its shares at around Rs 350-380 per share during Capital IPO. But one should wait for the official announcement of the price band and the size of the issue. The amount received from the new issue will be used to increase Tier-1 capital and to expect business.
Income of Tata Capital
Tata Capital performed strong financially in the first quarter of FY 26 and recorded a net profit of Rs 1,041 crore, which is more than doubled from Rs 472 crore earlier a year ago. The total income increased from Rs 6,557 crore to Rs 7,692 crore in the June 2024 quarter.
Fourth big issue
The IPO of Tata Capital will be another mega offering, which will probably be the fourth largest issue, which will be behind Hyundai Motor India (Rs 27850 crore), Life Insurance Corporation of India (Rs 20,550 crore) and Forest 97 Communications (Rs 18,300 crore).
(Note- Take the help of your financial advisor before investing in any IPO.)
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