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Tata Capital Ltd.’s $1.7 billion initial public offering attracted anchor investors including funds managed by Morgan Stanley, Goldman Sachs Group Inc. and Nomura Holdings Inc. as well as domestic mutual funds and insurers.
The company allocated 46.4 billion rupees ($523 million) of shares to the investors ahead of its listing, which opens for public subscription on Monday, according to an exchange filing confirming an earlier Bloomberg News report.
Life Insurance Corp. of India received the biggest allocation, taking 15% of the anchor shares, while funds managed by ICICI Prudential Asset Management Co., HDFC Asset Management Co., Aditya Birla Sun Life Asset Management Co., DSP Asset Managers Pvt. and Whiteoak Capital also participated in the anchor allotment.
Tata Capital allocated 142.4 million shares to anchor investors at 326 rupees apiece. The offering saw robust participation from domestic institutional investors, a statement from the shadow lender showed.
The listing is set to be the country’s largest since Hyundai Motor India Ltd.’s $3.3 billion offering last year, and comes as the nation heads into what could be a record month for IPOs.
Tata’s offering will involve the sale of as many as 475.8 million new and existing shares by Tata Capital, its parent and International Finance Corp., according to the IPO prospectus.
Tata Capital will start taking orders from the broader public from Monday, with shares being offered at 310 rupees to 326 rupees apiece through Wednesday. That would value the shadow lender at as much as 1.4 trillion rupees. The shares are scheduled to begin trading on Oct. 13.
Of the total number of shares being sold in the IPO, half will be earmarked for qualified institutional buyers, 35% for retail investors and the rest for non-institutional investors, including wealthy individuals. As much as 60% of the institutional portion can be allocated to anchor investors, according to the prospectus.
(Updates with details of anchor share allotment in first, second and third paragraphs.)
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