(Reuters) -Non-bank lender Tata Capital has raised 46.42 billion rupees ($523.18 million) from anchor investors including LIC and Norway’s wealth fund, as part of its $1.75 billion IPO that is set to be among India’s largest public offerings this year.
LIC invested 7 billion rupees, while Norway’s wealth fund was allotted shares worth 1.25 billion rupees, an exchange filing showed late on Friday. The shares were allotted at the upper end of the price band of 310-326 rupees per share.
Anchor investors are high-profile institutional investors that are allotted shares before the subscription opens for retail and other investors, and have to commit to holding their shares for a certain period after listing.
The three-day share sale opens for other investors on October 6. Tata Capital’s stock is set to list on October 13.
Tata Capital’s IPO comes at a busy time for India’s primary market. The October-December quarter is expected to see $8 billion worth of fundraises, with several large-ticket issuances such as LG Electronics India and WeWork India Management on the anvil.
These large issuances will likely help India’s total IPO fundraise in 2025, which has already reached $10.5 billion in the first nine months, inching closer to the record $20 billion IPO tally seen in the previous year.
Domestic mutual funds including ICICI Prudential, HDFC funds, Motilal Oswal and Nippon Life were allotted about 36% of the Tata Capital’s anchor book.
Together, anchor investors will buy about 30% of the 475.8 million shares on offer at the IPO.
Tata Capital’s IPO includes a fresh issue of up to 210 million shares, while existing shareholders Tata Sons and International Finance Corporation will offload up to 265.8 million shares.
The firm competes with Bajaj Finance, Shriram Finance and L&T Finance <LTFL.NS.
($1 = 88.7270 Indian rupees)
(Reporting by Yagnoseni Das, Vivek Kumar M in Bengaluru; Editing by Harikrishnan Nair)
