Category: Corporate

Tata Capital’s ₹15,512 crore initial public offering (IPO) was fully subscribed on its final day, October 8, 2025, reflecting strong investor interest despite some concerns about valuation and market volatility.

The IPO, priced between ₹310 and ₹326 per share, attracted bids for 33.48 crore shares, surpassing the 33.34 crore shares on offer. Qualified Institutional Buyers (QIBs) led the demand, with their portion subscribed 1.18 times, followed by Non-Institutional Investors (NIIs) at 1.10 times.

Retail investors subscribed 0.84 times their reserved portion, while employees oversubscribed their segment by over 2 times,

The IPO comprises a fresh issue of up to 210 million shares and an offer-for-sale by existing shareholders Tata Sons and the International Finance Corporation amounting to 265.8 million shares. Proceeds from the fresh issue will be used to augment Tata Capital’s capital base and for general corporate purposes

Despite the full subscription, the Grey Market Premium (GMP) remained subdued, indicating cautious investor sentiment. The GMP, a gauge of expected listing gains, was around ₹6 per share, suggesting a modest premium listing. Analysts attribute this muted response to factors such as concerns over asset quality following Tata Capital’s merger with Tata MotorFinance Ltd., which led to an increase in non-performing assets and a dip in return on equity.

Leading brokerages, including Anand Rathi and Canara Bank Securities, have maintained a ‘Subscribe for long-term’ rating on the IPO, citing Tata Capital’s diversified lending portfolio and strong risk management practices. However, some analysts have expressed caution due to the company’s recent financial performance and integration challenges post-merger.

The IPO is expected to list on the Bombay Stock Exchange and the National Stock Exchange on October 13, 2025. This marks a significant milestone for Tata Capital, a leading non-banking financial company in India, as it enters the public market.

Also Read: Adani Defence Unit Under Probe for $9 Million Import Tax Evasion?

Indian authorities are investigating Adani Enterprises’ defence arm for allegedly evading import duties on missile parts, according to an exclusive report by Reuters.

The probe marks the latest regulatory scrutiny of billionaire Gautam Adani’s business empire.

India’s Directorate of Revenue Intelligence (DRI) began investigating Adani Defence Systems and Technologies in March over suspicions that the company misclassified imported missile components to avoid paying tariffs, two government sources told Reuters. The alleged evasion amounts to 770 million rupees ($9 million).

Adani Defence, a relatively smaller unit of the group, manufactures drones, small arms and missile systems for Indian security forces.

The case centres on imports used to produce short-range surface-to-air missiles. Such parts normally attract a 10% import duty and an 18% local tax.

Investigators allege the company wrongly declared them as components for long-range missiles, which were exempt from tariffs under earlier rules.

One government source told Reuters that Adani executives admitted to the misclassification during the probe but gave no further details.

The company, however, has not responded to that claim. In a statement to Reuters, Adani Group said the DRI had only sought “clarifications” on the imports and that it had provided supporting documents.

“The issue stands closed from our end,” a spokesperson said, without confirming whether any payments were made to settle the matter.

The alleged evasion is notable, as $9 million represents more than 10% of Adani Defence’s 2024–25 revenue of $76 million and more than half its profit.

Under Indian rules, companies found guilty of misclassification can be asked to pay the unpaid duty along with a 100% penalty. If applied, this could raise Adani Defence’s liability to $18 million, Reuters reported.

The investigation, not previously disclosed, comes as Adani Group faces multiple regulatory challenges. India’s markets regulator recently cleared it in two stock manipulation cases but continues to examine over a dozen other alleged breaches of securities law.

The revenue department has also been investigating Adani since 2014 for alleged over-invoicing of coal imports, which the group denies.

Reuters also reported that the DRI has recently raised similar tariff misclassification issues with Samsung and Volkswagen, both of which are contesting the demands.

Customs data reviewed by Reuters show Adani Defence imported non-explosive missile parts worth $32 million from Russia since last year.

In total, the group has imported $70 million worth of defence components from Russia, Israel and Canada since January 2024.

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WeWork India Management Limited’s initial public offering (IPO), aiming to raise ₹3,000 crore, has garnered attention due to several concerns raised by governance advisory firms and market analysts.

The offering, which opened on October 3, 2025, and is set to close on October 7, is structured entirely as an Offer for Sale (OFS), meaning no new capital will be infused into the company. Instead, existing shareholders, primarily Embassy Buildcon LLP and 1 Ariel Way Tenant, a subsidiary of WeWork Global, are selling their stakes.

One of the primary concerns highlighted by InGovern Research Services is WeWork India’s financial health. Despite reporting a revenue of ₹2,024 crore and a net profit after tax of ₹128.19 crore for the fiscal year 2025, the company’s financials show signs of strain.

The company continues to report negative cash flows, with lease costs consuming over 43% of its revenues.

Additionally, the net profit was largely driven by a deferred tax credit, raising questions about the sustainability of its profitability

Another significant issue is the governance structure and promoter-related concerns. Over 53% of WeWork India’s pre-IPO shares held by Embassy Buildcon were previously pledged against approximately ₹2,065 crore of borrowings.

These pledges were temporarily released to facilitate the IPO, with an agreement that if the listing does not occur, the shares would need to be re-pledged within 45 days. This arrangement has raised concerns among potential investors about the stability and governance of the company.

The IPO’s subscription has been tepid, with the issue subscribed only 7% by the second day of bidding, up from 4% on the first day. The employee segment was the only category to show stronger interest, being oversubscribed at 1.2 times.

The muted response from institutional and retail investors may reflect the concerns raised by InGovern and other market participants.

WeWork India, a franchisee of the U.S.-based WeWork, operates 59 centers across major Indian cities, maintaining occupancy rates above 80%.

The company has reported steady revenue growth and profitability in recent years. However, the absence of new capital infusion through this IPO and the highlighted governance issues may impact investor confidence.

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IndusInd International Holdings Ltd (IIHL), the promoter of IndusInd Bank, has finalized the acquisition of a 100% stake in Sterling Bank, a financial institution based in the Bahamas.

This move follows IIHL’s initial purchase of a 51% equity interest in Sterling Bank in September 2022 through its wholly owned subsidiary, IIHL (Capital), Mauritius. The remaining 49% was acquired in a subsequent transaction, culminating in full ownership.

In conjunction with the acquisition, Sterling Bank has been renamed IIHL Bank & Trust Limited. This rebranding aligns with IIHL’s strategic objective to establish a global financial presence, particularly in the Caribbean region.

The acquisition is expected to enhance IIHL’s footprint in international banking markets and diversify its portfolio within the Banking, Financial Services, Securities, and Insurance (BFSI) sectors.

As of August 31, 2025, IIHL reported a net worth of $1.26 billion. The entity serves over 42 million customers through a network exceeding 6,100 touchpoints, with a business size surpassing $86 billion.

The acquisition of Sterling Bank is part of IIHL’s broader strategy to expand its global operations and achieve a market capitalization target of $50 billion by 2030.

The transaction is anticipated to close by the end of October 2025, pending regulatory approvals.

This acquisition underscores IIHL’s commitment to leveraging international best practices and digital financial technologies to strengthen its position in the global financial services industry.

IndusInd Bank, headquartered in Mumbai, is India’s fifth-largest private sector lender, offering a range of banking services to a diverse customer base.

The completion of this acquisition marks a significant step in IIHL’s vision to build a global financial powerhouse, combining decades of experience with global best practices to deliver long-term value to shareholders and customers.

Also Read: Tata Capital IPO Sees Muted Start; Day 2 Could Hold Key Signals

The initial public offering of Tata Capital Ltd opened on October 6 amid tempered investor response, and on the second day of bidding, subscription has reached roughly 46 percent so far.

The issue attracted bids for 15,27,94,428 shares against 33,34,36,996 shares on offer, according to data from the National Stock Exchange.

The Qualified Institutional Buyers (QIB) segment is 52 percent subscribed, the Retail Individual Investors (RII) category stands at 45 percent, non-institutional investors have covered 38 percent, and the employee quota is fully booked at 137 percent.

On Day 1, the IPO’s uptake was relatively muted. By market close, the overall subscription had reached around 39 percent, with QIBs showing strong interest (52 percent subscription), while retail and non-institutional categories lagged.

The employee portion had seen 1.10× oversubscription. Bids for 12,86,33,112 shares were received against the same issue base. The differential in subscription across categories suggested institutional faith, but cautious traction among retail investors.

A key indicator, the grey market premium (GMP), has remained subdued. As of October 7 morning, the GMP stood at around Rs 12.50, implying an expected listing price of about Rs 338.50, just 3.8 percent above the upper end of the issue price band of Rs 326.

The modest GMP reflects investor restraint on short-term gains, possibly because much of Tata Capital’s positive fundamentals and parentage are already priced in.

Analysts have pointed to a few contributing factors for the cautious start. The valuation at 4.2–4.3× post-issue book value may limit upside potential, leaving limited room for pop gains even if the business case is solid.

Some market participants noted that broader sentiment toward growth companies is wary, and that high valuation multiples may cap speculative interest.

As Day 2 unfolds, subscription trends in the retail and non-institutional segments will be closely watched. A stronger retail uptake could signal renewed confidence, while continued hesitancy might indicate that many participants are holding back pending clarity on listing prospects.

The movement of GMP will also be a key barometer: a pickup could reflect improving sentiment toward listing gains, whereas a flat or declining premium would underscore lingering caution.

Investors will also monitor sector and macro cues, including rate outlooks, liquidity conditions, and sentiment toward financials and NBFCs.

The smoking gun may well lie in how the IPO performs across investor segments today and whether that performance shifts GMP expectations ahead of the allotment and listing.

Also Read: Adani Energy Raises $250 Million Loan From International Lenders

Adani Green Energy Ltd has signed an agreement to raise about $250 million from a group of international lenders, marking the renewable energy firm’s first foreign-currency loan since the United States Department of Justice unsealed an investigation that touched the wider Adani conglomerate.

The loan, arranged with four banks — DBS Bank Ltd, DZ Bank AG, Rabobank and Bank SinoPac Co— is intended to refinance existing debt and support working capital needs, according to market reports.

The facility is structured for roughly five years and carries an indicative interest rate near 8.2 percent, though final pricing and documentation remain subject to customary conditions precedent.

The lenders and Adani Green did not provide immediate public comment. Market observers said the deal is notable because several international banks had previously weighed pausing fresh credit to Adani businesses after the U.S. legal developments, and the agreement signals that some lenders remain prepared to provide offshore financing on commercially acceptable terms.

The loan follows a series of legal and reputational challenges for the broader Adani Group that began with allegations and a U.S. criminal indictment unsealed in November 2024 alleging bribery and related misconduct in connection with solar contracts.

U.S. prosecutors widened their review in 2024 to examine whether senior executives were involved in improper payments related to energy projects; the company has denied wrongdoing and said it would cooperate with legal processes.

The U.S. move drew criticism in some quarters for its potential diplomatic and economic consequences. Commentators in the American press argued the Department of Justice action risked undermining economic collaboration and trust at a sensitive geopolitical juncture.

Those views were reflected in opinion pieces and commentary, and at least one U.S. congressman publicly questioned the Justice Department’s approach, warning of possible harm to bilateral ties.

Analysts said the successful placement of the loan may indicate a selective reopening of offshore funding channels for parts of the Adani group where lenders can quantify and price legal and reputational risks.

When the U.S. charges were first announced, Adani Group companies experienced sharp share price falls and higher scrutiny from investors and counterparties, prompting several partners to reassess or pause arrangements pending clarity on the legal process.

The new facility therefore both responds to existing refinancing needs and tests market appetite for further international funding for the group.

Whether this transaction leads to a sustained return to offshore borrowing for Adani subsidiaries will depend on final documentation, evolving legal proceedings in the United States and the degree of commercial comfort among international banks.

Market participants said lenders would continue to monitor legal, regulatory and reputational developments closely before extending additional credit to borrowers associated with ongoing investigations.

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