Eighteen of India’s top mutual funds and several major insurance companies also jumped in, picking up over 5 crore shares between them, a testament to Tata Capital’s standing at home. This surge of institutional investor interest sent a strong signal to the market, just days before the IPO opens for subscription.
For Tata Capital, which started in 2007 and has since blossomed into India’s third-largest NBFC with a ₹2.33 lakh crore loan book, this IPO is a springboard for its next phase of growth. Most of the proceeds will be used to boost the company’s financial cushion, helping it lend more even as it keeps risks in check. Meanwhile, Tata Sons and IFC will partly cash out their stakes.
The response to the anchor book, subscribed to five times over, reflects a vote of confidence in Tata Capital’s focus on retail and SME lending, its robust asset quality, and the backing of the larger Tata brand. Riding a wave of momentum from the anchor round, the IPO will be open from October 6 to 8, with trading set to begin on October 13. The offering has already attracted a premium in the grey market, hinting at the anticipation surrounding one of the year’s most closely watched listings.