The Tata Capital IPO, from the Tata Group’s NBFC company, opens for anchor investors today, October 3rd. For retail investors, the IPO will open on Monday, October 6th, and close on Wednesday, October 8th.
The company aims to raise ₹15,512 crore through this IPO, of which ₹4,641.6 crore will come from anchor investors.
Who Are the Anchor Investors?
Anchor investors, also called Qualified Institutional Buyers (QIBs), usually include mutual funds, pension funds, and large institutions. They are allotted shares a day before the IPO opens to attract retail investors.
In this IPO, the anchor investors are reportedly ICICI Prudential Mutual Fund, HDFC Mutual Fund, Axis AMC, and a government insurance company, though the company has not confirmed this officially. Anchor investors typically buy shares in large quantities.
Details of the Shares Being Sold
Tata Capital will issue 210 million new shares worth ₹6,846 crore and 265.8 million shares worth ₹8,665.87 crore through an offer-for-sale (OFS).
In the OFS, Tata Sons will sell 230 million shares, and International Finance Corporation (IFC) will sell 35.8 million shares.
The IPO’s price band is set at ₹310-326 per share. Retail investors must bid for a single lot of 46 shares, requiring a minimum investment of ₹14,996.
Each investor can apply for up to 13 lots. Share allotment is expected on October 9th, and the shares will likely be listed on BSE and NSE on Monday, October 13th.