Tata Capital is all set to come out with the country’s fourth largest initial public offering (IPO) ever and the biggest issue of Rs 15,512 crore in the current year on October 6.
The management of the non-banking financial company said on Monday that the issue will be priced within a band of Rs 310-Rs 326 per equity share. The anchor investor offer period will be on October 3. The bids can be made for a minimum of 46 equity shares and multiples of 46 equity shares thereafter.
Management on price
The issue will be a combination of a fresh issue of 210 million shares aggregating to Rs 6,846 crore and an offer for sale of 265.8 million shares totaling to Rs 866.5 crore. The management added that initially, the price was higher than Rs 326; however, it was revised to make it attractive for retail investors.
“We did very extensive roadshows, and met all institutional investors, probably 150 or 200 of them. We have built a pretty strong book across mutual funds, insurance companies, pension funds, as well as FDI investors. You will get to know the anchor investors on October 3 and will get to see the breadth of investors,” the management said.
Tata Sons and IFC to offload shares
The selling shareholders are Tata Sons and International Finance Corporation which will sell 230 million shares and 35.8 million shares, respectively. After the IPO, Tata Sons stake will come down from 88.6% to 78.8%. IFC, has 1.8% stake is offloading 50% of its holdings. At an average cost price of Rs 25 per share, It is set to make over 12 times in 14 years.