Mumbai, Oct 13 After witnessing a subdued listing, the shares of Tata Capital remained almost flat during its first trading session on Monday, closing at Rs 331.10, up 1.56 per cent from the IPO price of Rs 326 and 0.33 per cent from the listing price.
Earlier in the morning, the shares of the financial services subsidiary of Tata Sons opened flat at Rs 330 on both the NSE and BSE, at a 1.23 per cent premium above the issue price of Rs 326.
The listing price of Tata Capital was slightly above the grey market estimates. Ahead of the listing, unlisted shares of Tata Capital were trading flat at Rs 326, according to sources tracking unofficial markets.
The Rs 15,511-crore mainline IPO included a fresh issue of 210 million equity shares and an offer for sale of 265.8 million shares, with a price band of Rs 310–Rs 326. The public issue received a muted response from investors, registering an overall subscription of 1.95 times.
Qualified Institutional Buyers subscribed 3.42 times, Non-Institutional Investors at 1.98 times, and retail investors at 1.10 times.
Tata Capital was identified as an upper-layer NBFC in September 2022.
Domestic brokerages have given an “Add” rating and a valuation of Rs 360, based on a 2.9x FY27E P/B to the stock, highlighting a strong growth profile and support from the Tata Group. The broking reported that approximately 80 per cent of Tata Capital's loan book is secured, with retail finance accounting for 61 per cent of the total.
Tata Capital delivered a 31 per cent CAGR in AUM from FY22 to FY24, with average RoA and RoE of 2.3 per cent and 18 per cent in FY23 and FY24, respectively.
The funds raised from the IPO will be used to strengthen Tata Capital’s Tier-1 capital, supporting its future growth and lending requirements.
The listing is also being undertaken in line with the Reserve Bank of India’s requirement that upper-layer non-banking financial companies (NBFCs) must go public within three years of classification
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