The unlisted share price of IPO-bound companies has elicited quite a buzz in the investor community. However, after the HDB Financial issue price was set at a significant, nearly 50% discount to the then prevalent price in the unlisted market, some amount of apprehension has set in. Almost in quick succession we saw the price of other much-talked-about unlisted shares like NSDL, NSE and NCDEX also come off 1-year highs. Investors were worried about booking notional losses. Even the much-anticipated Tata Capital saw a 30% drop in the price of its unlisted shares. However, the unlisted share price of IPO-bound Hero FinCorp have a slightly different story
Tata Capital Vs Hero FinCorp: Tracking the unlisted share price movement
IPO-bound, Tata Capital saw a sharp dip in its unlisted shares. The shares are down over 29% in the last 6 months. It is now trading close to the Rs 775 per share mark but most market observers expect another 20% drop. This is because they believe that the Tata Capital IPO is likely to be priced closer to the rights issue. They are expecting under Rs 500 per share issue price. As a result, most are pricing in another 20% drop.
However, in comparison, the Hero FinCorp unlisted shares have a slightly different story to tell. Over the last 6 months, the prices are down just 3.5%, and over 1 month, it is trading flat. Most analysts and unlisted share market observers we spoke to pointed out that we cannot compare unlisted shares. The price and valuation are determined by the fundamentals of the company, and the trend could vary from company to company. It is difficult to paint all with the same brushstroke.
Tata Capital Vs Hero FinCorp: Current price and market cap in unlisted market
The Tata Capital shares are currently trading around Rs 775 per share in the unlisted market. The market cap is approximately valued at Rs 3,12,702 crore. The unlisted shares hit a 52-week high of Rs 1,095 per share, and the 52-week low is at Rs 765 per share.
In comparison, the Hero Fincorp Unlisted share price is currently trading between Rs 1,330 – 1,375 per share. The market cap is approximately around Rs 17,463 crore with a 52-week high for the share price at Rs 2,200 per share. Its 52-week low is hovering at current levels at Rs 1,325 per share.
The data for both Tata Capital and Hero Fincorp is taken from Unlisted Arena and Unlisted Zone, two of the actively traded platforms for unlisted shares.
Tata Capital Vs Hero FinCorp: IPO size and other key details
The latest reports indicate that the Tata Capital IPO is likely to be launched in October. However, this is subject to the RBI approval of an extension. There is no clarity yet on whether the company is mulling it or in the process of applying for an extension. RBI has notified it as an upper-layer NBFC, and this mandated listing within 3 years. The 3-year deadline ends in September.
The Tata Capital issue size is likely to be around Rs 17,000 crore. At this size, it will be one of the 5 largest issues seen in Indian markets over the last 10 years. As per the available information, nearly 47.58 crore shares are on offer, and it will be a book-built issue. The fresh component will comprise 21 crore shares. In comparison, the offer for sale would be for 26.58 crore shares. Tata Sons would be a key shareholder offloading stake.
In comparison, the Hero FinCorp IPO targets raising Rs 3,668.13 crore from this issue. Again, a combination of fresh issue and offer for sale, Rs 2,100 crore will be raised via fresh issuance. The OFS size is for Rs 1,568.13 crore.
No final date announced yet
Both these NBFC issues are, however, testing investor patience. The final issue date or price band is not announced for either.