The problem is a mixture of a new emission of equity worth 6,846 sterling books and a sales offer (OFS) with the promoters Tata Sons and International Finance Corporation (IFC), worth 8,665 crore.
Retail investors can teach for a batch of 46 shares with a minimum investment of 14,996 ₹, then offer in multiples of 46 thereafter. 35% of the problem is reserved for retail investors, while 50% concern institutions.
Before the IPO, Tata Capital has already issued stocks worth 4,642 crosses 68 anchor investors, which included Life Insurance Corporation of India (LIC), Goldman Sachs, Nomura, Morgan Stanley, among others.
So, should investors place their bets on the largest Indian stock exchange of the year? Here is what the analysts had to say:
Aditya Birla Capital – Subscribe long term
Aditya Birla Capital has a long-term “sub-be” recommendation on the IPO of Tata Capital. It is of the opinion that confidence is a key factor in the financial services sector and that Tata Capital benefits from the strong Tata brand.
The company also has a high national rating and the best possible international score, guaranteeing the cost of the lowest funds.
Reason for delinquencies, high non -guaranteed loans, funding for retail, inadequacy of liabilities to assets are listed as key risks.
Anand Rathi – Subscribe in the long term
Similar to Aditya Birla Capital, Anand Rathi also has a subscription to a long -term recommendation on the issue.
He said that by retaining a portfolio of diversified loans between products, customers and geographies, and increasing the share of guaranteed loans, the company minimizes the risk of concentration.
According to brokerage, from its rating comes from the fact that the IPO is “at a full price”.
Canara Bank Securities – Subscribe
Canara Bank Securities has a note “subscribed” to the IPO, declaring that the company has been profitable since 2007 and has been strongly rebounded after the Pandemic COVVI-19.
He also added that Tata Capital is well positioned in the Croissant NBFC sector in India with high potential in retail segments and SMEs. The IPO is at the cost of its peers and the post-fusion integration impacts of Tata Motors Finance should normalize.
Regulatory changes, rate volatility and competition are some of the main risks for the company.
LKP – Subscribe
Brokerage also has a note “subscribed” to the question, citing the profitable growth of the company, a solid credit profile with diversified liabilities, resilient financial performance, as well as its experienced leadership and its strong governance.
Deven Choksey Research – Neutral
Tata Capital’s evaluation and return profile compared to peers leads to being “fully evaluated”, according to Deven Choksey Research.
Although the company can set up its lover of loans at a healthy pace caused by its omni channel presence and its solid parentage, its yields are lower compared to other NBFC listed.
Consequently, Deven Choksey Research assigned a “neutral” note to the question.
