Tata Capital Share Price In Focus Ahead Of Stock Market Debut On Monday
The unlisted shares of Tata Capital have been trading at a premium in the private market, indicating a marginal listing gain over the upper end of the IPO price band.
The initial public offering (IPO) of Tata Capital Ltd. is scheduled to list on the BSE and NSE next week, with the tentative listing date being Monday, October 13.
On the final day of bidding, the issue was oversubscribed 1.95 times, with bids received for 65,12,29,590 shares against 33,34,36,996 shares on offer.
With its listing scheduled for next week, here’s a look at the Tata Capital IPO’s grey market premium (GMP) and other key details.
Tata Capital IPO GMP And Expected Listing Price
According to InvestorGain, the latest GMP for Tata Capital was Rs 6 as of 1:00 p.m. on October 10. With the upper end of the price band at Rs 326, the IPO’s estimated listing price is Rs 332 (upper band plus the last GMP), indicating an expected gain of 1.84% per share.
The unlisted shares of Tata Capital Limited were trading as high as Rs 353 before sliding to Rs 338.5 on October 6. The GMP declined further to Rs 3.5 (listing price Rs 332.5) when the IPO closed for subscription on October 9.
Note: GMP does not represent official data and is based on speculation.
Tata Capital IPO Key Details
The Tata Capital IPO was a book-built issue of Rs 15,511.87 crore. The company, a diversified financial services entity and a subsidiary of Tata Sons Pvt. Ltd., had set the IPO’s price band between Rs 310 and Rs 326 per share.
The IPO was open for subscription from October 6 to October 8.
Allotment for the Tata Capital IPO took place on Thursday, October 9. Refunds to unsuccessful applicants will be initiated today, and allotted shares will be credited to successful investors’ demat accounts on Friday, October 10.
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About Tata Capital Ltd.
Tata Capital Ltd. operates as a non-banking financial company (NBFC). It provides financial products and services to retail, corporate and institutional clients. Its consumer loans include personal, home, auto, education loans, and loans against property. For businesses, it offers term loans, working capital loans, equipment financing and lease rental discounting. The company also provides wealth management services. Its investment banking services cover equity capital markets, mergers and acquisitions advisory, and structured finance solutions.
Use Of Proceeds
Tata Capital Ltd. intends to use the net proceeds from the issue to strengthen the company’s Tier-I capital base. This augmentation is aimed at meeting future capital requirements, including funding onward lending activities.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
