Tata Capital, which is set to open the biggest public offer so far in 2025 next Monday (October 6), has drawn both global and local interest as early institutional investors.
According to a Bloomberg report, Morgan Stanley’s Counterpoint Global, Goldman Sachs Asset Management, White Oak Capital Partners, Nomura Asset Management and major domestic mutual funds have placed bids as anchor investors.
Tata Capital aims to garner ₹15,512 crore from its maiden offer at the top end of the price band of ₹310-326 per share. This is, however, below the rights issue price of ₹343 per share, through which the company had raised ₹1,750 crore in July.
Tata Capital managing director and CEO Rajiv Sabharwal said that the board has sought to strike a balance between institutional and retail affordability.
The maiden offer includes a fresh issue of 21 crore equity shares and offer for sale of 26.58 from Tata Sons and International Finance Corporation.
The company intends to use the proceeds to shore up its capital adequacy, which is likely to to up to around 22 per cent post issue.
GST benefit
The non-bank finance company (NBFC) is anticipating both near term and long term benefits from the Centre’s recent move to lower GST rates in driving credit demand.
“GST reduction will have two impacts — one which is seen immediately in the auto sector where sale of cars, commercial vehicles and two wheelers have gone up. The second impact I am expecting will come after a lag over the next 3 months or so, with some of the raw materials have become cheaper. For example, if cement gets cheaper hopefully construction costs will also come down. So we believe GST cut will be positive,” Sabharwal said on Friday.
