Tata Capital IPO fails to garner full subscription after two days of share sale

The initial public offering of Tata Capital Ltd. failed to garner full subscription after two days of share sale, even as that of LG Electronics India Ltd. got sold out on the first day itself.

The Tata Capital IPO is the first initial public offering from the House of Tata since Tata Technologies' nearly two years ago. (Reuters)

Investors bid for 24,96,33,260 shares as against 33,34,36,996 shares on offer in the Tata Capital IPO, which translates into 75% subscription, according to data on the website of the National Stock Exchange on Tuesday. The non-banking financial company has so far raised ₹8,158.82 crore from 14,22,671 applications.

The demand was led by qualified institutional buyers who picked up 86% of the shares reserved for them. The quota for non-institutional investors (NIIs) garnered 76% subscription. The retail portion was subscribed 67%. Earlier on Friday, Tata Capital raised ₹4,642 crore from 68 anchor investors.

The issue was subscribed 50% on the first day.

Promoter Tata Sons Pvt. Ltd., which has an 88.6% stake in the company, is offloading 23 crore while International Finance Corporation with 1.8% stake is selling 3.58 crore shares.

The IPO proceeds will be used to strengthen the company's Tier-1 capital base and support future capital requirements.

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The IPO is being undertaken in line with the Reserve Bank of India's listing mandate for “upper-layer” NBFCs, which requires them to be listed within three years of classification. Tata Capital was designated as an upper-layer NBFC in September 2022.

Tata Capital is expected to make its stock market debut on 13 October.