Tata Capital's $1.75 billion public share sale was fully subscribed on Wednesday, the final day of a three-day bidding process, buoyed by institutional demand as investors lined up for India's biggest offering this year amid a rush of new listings.
The Tata Group company is India's third-largest non-bank lender in terms of revenue, trailing Shriram Finance and Bajaj Finance, which holds the top position.
The IPO drew bids worth Rs 109.70 billion ($1.24 billion), driven by qualified institutional buyers who bid for 1.2 times their reserved portion.
Non-institutional investors bid for over 1.13 times their quota, while retail investors subscribed 0.84 times, exchange data showed.
Tata Capital’s IPO saw muted demand across investor segments as attention shifted to LG Electronics India's $1.3 billion offering on Tuesday, which promises both short-term listing gains and long-term growth, said Prashant Tapse, senior vice president of research at Mehta Equities
The Mumbai-based financial services company raised $523.2 million from anchor investors, including LIC and Norway's wealth fund last week, and is seeking a valuation of up to $15 billion.
The IPO comes at a bustling time for domestic listings, with the October-December quarter set to see $8 billion worth of fundraising, the second busiest on record, and several big-ticket share sales.
The offerings could push 2025’s total IPO tally closer to last year’s $20 billion record raised from 267 offerings.
Tata Capital, which is set to list on October 13, issued up to 210 million new shares, while existing shareholders offloaded up to 265.8 million shares.
The Tata Group company's valuation seems "reasonable" compared to peers like Bajaj Finance and Shriram Finance, Tapse said.
