Tata Capital's IPO: A Strategic Move to Enhance Market Participation
Tata Capital has set the price band for its IPO at Rs 310-326 per share, aiming to attract retail investors by pricing below its recent rights issue. The IPO seeks to raise up to Rs 15,512 crore, supporting capital growth and adhering to RBI's listing mandate for upper-layer NBFCs.
- Country:
- India
Tata Capital, a non-banking financial company (NBFC) under the Tata Group, has strategically set its initial public offering (IPO) price band at Rs 310-326 per share. This pricing is approximately 5% lower than its previous rights issue, aiming to widen retail investor participation, as articulated by Managing Director and CEO Rajiv Sabharwal.
The IPO, expected to raise up to Rs 15,512 crore, will include 47.58 crore shares, with a mix of new shares and an offer for sale primarily by Tata Sons. This marks the largest public issue this year, reflecting Tata Capital's commitment to expanding its market presence and aligning with regulatory mandates set by the Reserve Bank of India.
The upcoming IPO underscores Tata Capital's strategic positioning in the financial sector, with its loan book heavily focused on retail and SME customers, supported by a resilient brand reputation and significant investments in operational efficiency. The IPO window is slated to open between October 6 and October 8, 2023.
(With inputs from agencies.)
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