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Kolkata: Tata Capital, which is a non-banking financial company of the Tata group has filed draft papers with the capital markets regulator Sebi to come up with an IPO. The IPO of the Tata group company is likely to trigger very high investor enthusiasm, if the past records are any indication.
According to reports, Tata Capital is likely to float an IPO that will comprise both an OFS (offer for sale) component and a tranche of fresh equity shares. There will be 21 crore fresh shares and more than 26.58 crore shares from the promoters, revealed the draft document.
In all, more than 47.58 crore equity shares with a face value of Rs 10 each will be offered to investors. Tata Sons, which is the parent company of the group, will sell about 23 crore equity shares in the OFS segment, while International Finance Corporation will sell more than 3.58 crore equity shares, making the OFS portion to more than 26.58 crore shares. However, the company didn't reveal the amount of money it wants to raise from the market through this issue.
The proceeds of the issue will be utilised to beef up the firm's core capital for lending purposes. Tata Capital operates in the domains of commercial finance, consumer loans, wealth services and marketing/distribution of Tata Cards.
The lead managers to the IPO include Kotak Mahindra Capital, Axis Capital, BNP Paribas, Citigroup Global Markets India and HDFC Bank. MUFG Intime India will serve as the registrar for the issue.
Tata Technologies, a subsidiary of Tata Motors, was the last Tata group company to hit Dalal Street with an IPO. The price band for the shares was Rs 500 and bidding took place between November 22 and 24. The IPO received overwhelming response as investors pumped applications worth Rs 1.57 lakh crore, resulting in an oversubscription of 69.43 times. It was an entirely offer for sale. The listing took place on November 30 and the listing price was at 140% premium to the issue price of Rs 500. The stock opened at Rs 1,200 on the NSE and Rs 1199.95 on the BSE.
According to reports, there are 29 publicly listed companies of the Tata Group in India. However, the Tata group website mentions that such companies number 26.
(Disclaimer: (Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, INVITs, any form of alternative investment instruments and crypto assets.))
