Tata Capital IPO subscribed twice over; institutional investors dominate

The fourth-largest IPO in Indian markets saw strong QIB interest but subdued retail participation, with analysts calling valuations largely priced in

Tata Capital’s ₹15,512 crore mega initial public offering (IPO) — the fourth largest in the domestic market — was subscribed just twice, as the simultaneous launch of two big-ticket offerings drained liquidity.

 

The qualified institutional buyer (QIB) segment was subscribed 3.4 times, the high-net-worth individual category twice, the retail portion 1.1 times, and the employee quota 2.9 times. 

 

Overall, the issue drew bids worth ₹21,230 crore and nearly 2.4 million applications.

 

A day before opening, Tata Capital allotted shares worth ₹4,641 crore to anchor investors. 

 

The IPO valued the Tata group company at nearly ₹1.4 trillion, translating to around 3.5 times its book value.

 

Analysts noted that while Tata Capital has solid fundamentals and growth prospects, the current pricing factors in most of the near-term upside. In the unlisted market just a year ago, the stock had traded above ₹1,000 per share.