Street Signs: Tata Capital set sail in rough seas, a coiled spring at 25K

Tata Capital readies India's biggest NBFC IPO amid volatile markets; Nifty eyes 25K on GST boost; grey market premiums heat up for upcoming issues led by Urban Company

Tata Capital holds its gaze as markets blink 

Tata Capital is set to launch its ₹17,000 crore initial public offering (IPO) before month-end despite a subdued market, according to investment bankers. Under Reserve Bank of India rules, a non-banking financial company in the upper-layer category (NBFC-UL) must list by September 30 unless it obtains a special exemption from the regulator. The company filed its offer document confidentially, which the Securities and Exchange Board of India approved in June. With several large offerings, including LG Electronics’ planned IPO, on hold due to market volatility, Tata Capital’s share sale will attract close attention. The IPO, potentially valuing the firm at ₹1.5 trillion, would be India’s fourth-largest and the largest ever by an NBFC. 

A spring-loaded Nifty: A coiled spring at 25K 

The benchmark National Stock Exchange Nifty 50 index rose 1.3 per cent last week to 24,741, aided by goods and services tax cuts on daily essentials, which are expected to stimulate economic activity. “The current trend is neutral to mildly bullish. A move above 24,800 could open the path to 25,000, while immediate support lies at 24,600, followed by the 24,350–24,400 zone,” said Hariprasad K, founder of Livelong Wealth. Rupak De, senior technical analyst at LKP Securities, observed: “Momentum could pick up if Nifty moves decisively above 24,750, targeting 25,150–25,250 in the short term. On the downside, support stands at 24,500.” 

Whisper to roar: Grey market finds its voice 

Grey market premiums (GMP) for the three initial public offerings (IPOs) scheduled this week are quoted between 12 per cent and 20 per cent, with technology-enabled home and beauty services provider Urban Company commanding the upper end. The Tiger Global-backed firm aims to raise ₹1,900 crore at a marked-down valuation of ₹14,800 crore. In comparison, flexible workspace player Dev Accelerator’s ₹143 crore IPO trades at a 15 per cent GMP, while jewellery retailer Shringar House of Mangalsutra’s ₹400 crore issue quotes around 12 per cent. Separately, Amanta Healthcare, which drew an 82x subscription, is expected to list with a gain of about 7 per cent.