MUMBAI: Tata Capital’s Rs 15,511 crore initial public offering (IPO) – the largest ever from the Tata group and also by any NBFC – will open on Oct 6. The IPO values the company at between Rs 1,31,591 crore and Rs 1,38,383 crore, based on the price band of Rs 310-326 a share. The issue closes on Oct 8, with anchor investor bidding on Oct 3. The floor price is 31 times the face value of the shares, while the cap price is 32.6 times.Investors can bid for a minimum of 46 shares and in multiples thereafter.The IPO will comprise up to 47.58 crore shares, including a fresh issue of 21 crore shares and an offer-for-sale (OFS) of 26.58 crore shares resulting in an 11% dilution. Tata Sons, the promoter, will sell up to 23 crore shares, while International Finance Corporation will offload up to 3.58 crore shares.Of the total shares on offer, 21 crore will be newly issued by Tata Capital under the fresh issue. The capital raised from this component will flow directly to the company to support corporate purposes, including augmenting its Tier-I capital base. The remaining 26.58 crore shares will be offered through the OFS, with proceeds going to the selling shareholders—primarily Tata Sons and IFC—rather than to the company.The equity dilution arises solely from the fresh issue, which increases the overall share base. The OFS, by contrast, involves a transfer of ownership and does not dilute existing shareholders.
