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.
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