Tata Capital raises Rs 4,642 crore from 68 anchor investors ahead of IPO

Tata Capital Ltd’s Rs 15,512-crore IPO grabbed the spotlight with a strong anchor book subscription, raising Rs 4,642 crore from 68 domestic and global institutional investors. The anchor portion saw overwhelming demand, reportedly subscribed nearly five times, underscoring investor confidence in the Tata Group’s financial services arm ahead of its market debut.

"Due to strong demand, investors did not get the kind of the stake they were looking to have in the company and had to be satisfied limited subscription", sources said. Top Indian mutual funds such as HDFC Mutual Fund and ICICI Prudential MF were among the investors, joined by Life Insurance Corporation of India (LIC) and international players including Goldman Sachs and Morgan Stanley.

The anchor book’s diversity, spanning mutual funds, sovereign funds, insurers, and foreign portfolio investors, has underscored Tata Capital’s broad appeal. Market watchers said the stellar line-up of investors is uncommon even for large NBFC listings, underscoring how Tata Capital’s IPO has become one of the most keenly tracked financial sector offerings in recent years.

Anchor round enthusiasm has set an optimistic tone for the IPO’s next phase, as retail and institutional bidding is scheduled to open on 6 October. The price band has been established at Rs 310 to Rs 326 per share, with applications starting at a minimum lot of 46 shares. The IPO’s allure is further supported by Tata Capital’s diversified lending portfolio across retail, SME, and housing finance, as well as improving profitability and the reputation of the Tata brand. Market participants noted that investor enthusiasm is driven by Tata Capital’s diversified lending portfolio spanning retail, SME, and housing finance segments, along with its improving profitability and the credibility associated with the Tata brand.

With subscriptions in the anchor round far exceeding supply, the upcoming retail and institutional segments are being closely watched. The anchor event is widely seen as an indicator of continued strong demand for the offer, which opens shortly.