Tata Capital leaves unlisted investors with up to 70% loss

New Delhi: Tata Capital’s initial public offering (IPO) has set its price band at Rs 310-326 per share, a move that has come as a disappointment for investors who had earlier bought its shares in the unlisted market at significantly higher prices.

At its peak, Tata Capital’s unlisted stock had traded at around Rs 1,125. Compared to this, the IPO’s upper band of Rs 326 represents a steep 71 per cent erosion in value for those early buyers.

Even at yesterday’s levels, the unlisted share price was still trading at a 56 per cent discount to the IPO band, raising concerns that investors may not even recover their initial investment.

The situation mirrors other recent high-profile IPOs, where shares that once commanded strong premiums in the unlisted market entered the market at far lower prices.

HDB Financial Services launched its Rs 12,500-crore IPO at Rs 700–740 per share, far below the Rs 1,225 level seen in the grey market just a few months earlier.

For Tata Capital, the IPO opens for subscription on October 6 and will close on October 8, with anchor investor allocation scheduled for October 3.