Tata Capital Raises Rs 4,641 Crore From Anchor Investors Ahead Of IPO
Life Insurance Corp. got the highest anchor allocation of 15.08%, amounting to over Rs 700 crore.
Tata Capital Ltd. has raised over Rs 4,641 crore from anchor investors on Friday, ahead of its initial public offering. The company allotted 14.23 crore shares at Rs 326 apiece to 135 anchor investors.
Life Insurance Corp. got the highest allocation of 15.08%, followed by Amansa Holdings Pvt. Ltd. and Nomura India Investment Fund Mother Fund at 3.77%. LIC has received an allocation of over Rs 700 crore through the Tata Capital anchor allotment. Marquee investors including Morgan Stanley, Goldman Sachs, and Nomura also bagged shares of the issue.
A total of 18 domestic mutual funds applied through 59 schemes, the NBFC said in an exchange filing on Friday. They have collectively netted 35.55% of the anchor portion.
Kotak Mahindra Capital Company Ltd., Axis Capital Ltd., BNP Paribas, Citigroup Global Markets India Pvt Ltd., HDFC Bank Ltd., HSBC Securities and Capital Markets (India) Private Ltd., ICICI Securities Ltd., IIFL Capital Services Ltd., J.P. Morgan India Private Ltd., SBI Capital Markets Ltd. are all the book-running lead managers, while MUFG Intime India Pvt Ltd. is the registrar.
Tata Capital is set to launch its initial public offering to raise Rs 15,511 crore through the sale of equity, as well as a fresh issue of shares. The IPO comprises a fresh issue of up to 21 crore equity shares aggregating up to Rs 6,846 crore and an offer for sale of up to 26.6 crore equity shares worth Rs 8,665 crore. The price band for the issue is set at Rs 310-326 per share.
Promoter Tata Sons will divest up to 23 crore shares, while International Finance Corporation (IFC) will sell up to 3.6 crore shares through the OFS route. The company will also issue up to 21 crore shares via a primary raise.
The lot size for an application is 46 shares, which means the minimum amount of investment required by a retail investor is Rs 14,996 based on the upper price band. Small institutional investors will need to buy a minimum of 14 lots aggregating to 644 shares, which means they will need to invest Rs 2.09 lakh and big institutional investors will have to buy a minimum of 67 lots, that is an investment of at least Rs 10.04 lakh.
The allotment of shares to IPO investors will be finalised tentatively on Oct. 9, and the credit to the demat account will be done on Oct. 10. Tata Capital will list on the BSE and NSE on Oct. 13.
The public issue is expected to be among the most closely watched offerings of the year, given Tata Capital's position as the financial services arm of the Tata Group.
