Tata Capital plans $2 billion IPO launch in early October after RBI nod

By Rajesh Mascarenhas and Baiju Kalesh

 

Tata Capital Ltd. is preparing for an initial public offering in the first half of October after asking the Reserve Bank of India for a short extension to the launch timetable, according to people familiar with the matter.

 

The financial services company, part of the Tata Group, could wrap up IPO roadshows this week and file a second draft red herring prospectus soon, the people said, asking not to be identified because the process is private.  

 

The RBI has instructed large shadow financiers including Tata Capital to list by the end of September to improve transparency in the sector and help mitigate risks, but Tata Capital asked for an extension of a few weeks to better prepare for its share sale, the people said. The RBI approved the request, they said.

 

Representatives for Tata Capital and the RBI didn’t respond to requests for comment. 

 

Tata Capital is looking to raise as much as ₹17,000 crore ($1.9 billion) at a valuation of about $18 billion in the IPO, which would make it the biggest in India since Hyundai Motor India Ltd.’s record $3.3 billion offering last year.  

 

Tata Investment Corp., a shareholder in Tata Capital, rose as much as 3.2 per cent in Mumbai early Thursday afternoon, its biggest intraday gain since Aug. 5. 

Urban Company subscribed 9 times on Day 2 

The initial public offering (IPO) of app-based beauty and home services platform Urban Company received 9 times subscription on the second day of bidding on Thursday. The ₹1,900 crore IPO received bids for over 96,14,10,320 shares against 10,67,73,244 shares on offer, according to NSE data. The quota for non-institutional investors garnered 18.22 times subscription while the category for RIIs got subscribed 17.68 times.

 

Dev Accelerator booked over 16 times on Day 2 

The initial public offering (IPO) of Dev Accelerator garnered 16.08 times subscription on the second day of share sale on Thursday. The company’s initial share sale received bids for 21,14,04,355 shares against 1,31,47,075 shares on offer, as per NSE data. Retail Individual Investors (RIIs) portion received a whopping 59.31 times subscription. 

Sebi board to meet today to consider IPO reforms 

The Securities and Exchange Board of India’s (Sebi’s) board is likely to discuss a raft of regulatory reforms during its upcoming meeting on Friday. These measures included relaxing the minimum IPO requirements for very large companies, and also extending the timeline for them to meet minimum public shareholding norms, sources said. Other key items on the agenda included simplifying compliance for foreign portfolio investors (FPIs), relaxing the regulation for accredited investors in certain alternative investment funds (AIFs), expanding the scope of rating agencies’ activities, and granting equity status to Reits and Invits, they added. The board may approve a proposal to encourage large issuers to pursue listings in India.

 

Cotec Healthcare files draft papers to raise funds 

Pharmaceutical company Cotec Healthcare has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The proposed IPO comprises a fresh issue of equity shares aggregating up to ₹295 crore, along with an offer for sale (OFS) component of 60,00,000 shares, according to the draft red herring prospectus filed on Thursday. Under the OFS, promoters Harsh Tiwari and Vandana Tiwari will offload 30,00,000 equity shares each. The company proposes to utilise proceeds from the fresh issue worth ₹226.25 crore for setting up anew project aimed at enhancing existing manufacturing capacities and facilitating the manufacture of new products.