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Tata Capital has raised INR 46.42 billion (USD 523 million) from anchor investors, including LIC and Norway's sovereign wealth fund, ahead of its USD 1.75 billion IPO - one of India's largest this year. LIC invested INR 7 billion, while Norway's wealth fund bought shares worth INR 1.25 billion, allotted at INR 326 each, the upper end of the price band. The IPO, opening October 6 and listing October 13, includes a fresh issue of 210 million shares and an offer for sale of 265.8 million shares by Tata Sons and IFC. Anchor investors will hold around 30% of the 475.8 million shares on offer.
Non-bank lender Tata Capital TATC.NS has raised 46.42 billion rupees ($523.18 million) from anchor investors including LIC and Norway's wealth fund, as part of its $1.75 billion IPO that is set to be among India's largest public offerings this year. Advertisement
LIC LIFI.NS invested 7 billion rupees, while Norway's wealth fund was allotted shares worth 1.25 billion rupees, an exchange filing showed late on Friday. The shares were allotted at the upper end of the price band of 310-326 rupees per share.
Anchor investors are high-profile institutional investors that are allotted shares before the subscription opens for retail and other investors, and have to commit to holding their shares for a certain period after listing.
The three-day share sale opens for other investors on October 6. Tata Capital's stock is set to list on October 13.
Tata Capital's IPO comes at a busy time for India's primary market. The October-December quarter is expected to see $8 billion worth of fundraises, with several large-ticket issuances such as LG Electronics India and WeWork India Management on the anvil.
These large issuances will likely help India's total IPO fundraise in 2025, which has already reached $10.5 billion in the first nine months, inching closer to the record $20 billion IPO tally seen in the previous year.
Domestic mutual funds including ICICI Prudential, HDFC funds, Motilal Oswal and Nippon Life were allotted about 36% of the Tata Capital's anchor book.
Together, anchor investors will buy about 30% of the 475.8 million shares on offer at the IPO.
Tata Capital's IPO includes a fresh issue of up to 210 million shares, while existing shareholders Tata Sons and International Finance Corporation will offload up to 265.8 million shares.
The firm competes with Bajaj Finance BJFN.NS, Shriram Finance SHMF.NS and L&T Finance
($1 = 88.7270 Indian rupees)
Source: Reuters
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