Bad news for Noel Tata, Tata Capital shares make flat market debut on…, climbs only by…

Shares of Tata Capital Ltd, the non-banking financial company, made a positive debut on Monday, listing over 1 per cent higher than its issue price of Rs 326 per share.

The stock opened at Rs 330, up 1.22 per cent on both the BSE and NSE, and later gained further to touch Rs 332, marking a 1.84 per cent rise on the BSE. During morning trade, the company’s market capitalization was at Rs 1,38,658.65 crore.

Tata Capital Share Market Debut

Tata Capital’s Rs 15,512 crore initial public offering (IPO) had been fully subscribed on the final day of bidding last Wednesday, receiving an overall subscription of 1.95 times.

Tata Capital’s IPO is the largest issue of this year. The price range for the offer was Rs 310-326 per share. The Initial Public Offering (IPO), had a total of 47.58 crore shares, including a fresh issue of 21 crore equity shares and an Offer For Sale (OFS) of 26.58 crore shares.

Proceeds from the IPO will be used to strengthen the company’s Tier-1 capital base, supporting future capital requirements, including onward lending.

The IPO was undertaken in line with the Reserve Bank of India’s (RBI) listing mandate for upper-layer NBFCs, which requires them to be listed within three years of classification. Tata Capital was designated as an upper-layer NBFC in September 2022.

With a portfolio of more than 25 lending products, the company caters to a diverse customer base, including salaried and self-employed individuals, entrepreneurs, small businesses, SMEs, and corporates.

In addition to lending, Tata Capital distributes third-party products such as insurance and credit cards, offers wealth management services, and acts as a sponsor and investment manager to private equity funds. 

(With Inputs PTI)

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