Did Tata Capital’s IPO Cause Up to 70% Loss for Unlisted Investors?
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Synopsis
Tata Capital's IPO has left many investors reeling after setting a disappointing price range. With potential losses reaching up to 70%, what does this mean for the future of unlisted shares? Discover the implications and the expected listing date in this insightful analysis.
Key Takeaways
- Price Band: Rs 310-326 per share.
- Potential Loss: Up to 70% for early investors.
- IPO Subscription Dates: October 6 to October 8.
- Total Shares: 47.58 crore shares offered.
- Listing Date: Expected on October 13.
New Delhi, Sep 29 (NationPress) Tata Capital’s initial public offering (IPO) has established a price range of Rs 310-326 per share, leading to dismay among investors who acquired shares in the unlisted market at considerably higher rates.
At its highest point, Tata Capital’s unlisted stock was valued around Rs 1,125. With the IPO’s upper limit set at Rs 326, this represents a significant 71% decline in value for those early investors.
Even with yesterday’s prices, the unlisted shares were still trading at a 56% discount to the IPO band, raising worries that investors might not recoup their original investments.
This predicament reflects other recent notable IPOs, where shares that previously commanded high premiums in the unlisted market entered at much lower prices.
For instance, HDB Financial Services introduced its Rs 12,500-crore IPO at Rs 700–740 per share, significantly lower than the Rs 1,225 price seen in the grey market just a few months prior.
Tata Capital’s IPO subscription opens on October 6 and closes on October 8, with the allocation for anchor investors slated for October 3.
The IPO lot size is 46 shares, and multiples thereafter. The proposed issue comprises 47.58 crore shares, including a fresh issue of 21 crore shares and an offer for sale (OFS) of 26.58 crore shares.
Tata Sons plans to divest 23 crore shares, while the International Finance Corporation (IFC) will liquidate 3.58 crore shares.
The proceeds from the IPO are intended to bolster Tata Capital’s Tier-1 capital, facilitating future growth and lending needs.
This listing is also in compliance with the Reserve Bank of India’s mandate that upper-layer non-banking financial companies (NBFCs) must go public within three years of their classification.
Tata Capital was recognized as an upper-layer NBFC in September 2022.
The IPO, managed by a consortium of investment banks, including Axis Capital, Kotak Mahindra Capital, BNP Paribas, HDFC Bank, HSBC, Citigroup, ICICI Securities, IIFL Capital, SBI Capital Markets, and JP Morgan India, is anticipated to be listed on the BSE and NSE on October 13.
Point of View
It is essential to approach Tata Capital's IPO situation with a balanced perspective. While the initial disappointment for investors is undeniable, understanding the broader market dynamics and regulatory requirements can provide valuable insights into the evolving landscape of non-banking financial companies (NBFCs) in India.
NationPress
29/09/2025
Frequently Asked Questions
What is the price band for Tata Capital's IPO?
The price band for Tata Capital's IPO is set at Rs 310-326 per share.
When does the subscription for Tata Capital's IPO open?
The subscription for Tata Capital's IPO opens on October 6 and closes on October 8.
What percentage of loss are early investors facing?
Early investors are facing potential losses of up to 70% compared to the unlisted stock's peak price.
How many shares are included in the IPO?
The proposed issue consists of 47.58 crore shares, including a fresh issue of 21 crore shares and an offer for sale of 26.58 crore shares.
When is the expected listing date for the IPO?
The IPO is expected to be listed on the BSE and NSE on October 13.
