Shares of Tata Capital on Monday made a muted market debut and closed over 1% higher against the issue price of Rs 326, after the largest initial public offering (IPO) in India this year raised ₹15,511 crore amid the ongoing boardroom issues at Tata Group and Tata Sons.
The stock started trading at Rs 330, up 1.22% from the issue price on both the BSE and NSE. During the day, shares hit a high of Rs 332.80 and a low of Rs 326.15 on the BSE. The stock finally ended at Rs 330.40, up 1.34%.
“If the growth rate of our country sustains, our book can double in the next three years,” said Rajiv Sabharwal, managing director & CEO.
Funds from the IPO that added over 2.2 million new shareholders will suffice for over two-and-a-half years, firm’s executives said. The shadow lender faces asset quality risks, said brokers.
Credit costs had always been under 1%, and the company is confident to bring it below 1%, Sabharwal said. It had spiked to near 1.4% after merger with Tata Motors Finance – which had high gross and net NPAs – this year.
Saurabh Agrawal, group CFO and executive director of Tata Sons, said: “Monday marks the beginning of a new phase. We are conscious of our responsibilities, and aware of the expectations that come with this moment.” The listing ceremony was attended by Tata Sons chairman N Chandrasekaran.
“Amid uncertainty in the global economy, India’s story continues to gain strength and momentum,” Agrawal said. The overall credit outstanding in the economy is set to double to Rs 500 lakh crore in the next five years. Tata Capital is well positioned to seize the opportunity, he said.
Life Insurance Corporation of India, global investment banks, mutual funds, hedge funds and sovereign wealth funds were anchor investors.
The first segment of anchor investors’ lock-in is till November 8 for 50% shares and the second lock-in is expiring on January 7, 2026. At the listing price of Rs 330 per share, Tata Capital has a market capitalisation of Rs 1,39,783 crore.
Tata Capital’s IPO and listing have set the benchmark for other large IPOs. Emkay and JM Financial initiated ‘buy’ calls on the stock with a 10% upside. Investment bankers, lawyers and auditors present at listing ceremony said investors should hold the stock for long term.