Tata Capital Ltd is to launch a massive Rs. 15,512-crore initial public offering (IPO) on Monday, 6 October, to become the largest IPO ever from the TATA group and the biggest by any non-banking financial company (NBFC) in India.

The IPO will be to open public subscription of Rs. 310 to 326 per share, with a lot size of 46 shares for retail investors. The issue has already generated considerable investor buzz, with an anchor book increasing Rs. 4,642 crore from 68 marquee domestic and world institutional investors. Reports indicates that the anchor part was oversubscribed almost fivefold, indicating strong demand and confidence in Tata Capital’s diversified lending portfolio across retail, SME, and housing finance.

However, the founder of Carnelian Asset Advisor, Vikas Khemani, warned investors against succumbing to FOMO. In a tweet on 4 October, he wrote that the Tata Capital IPO priced @ 326 per share. Many investors have bought in the unlisted space as high as Rs. 1050 over the last few years. They wouldn’t break even over the next 5 years. This is the downside of doing investments without using the brain or understanding, or out of FOMO.

He further emphasized that, even in a good company with high governance, misunderstanding, investors can lose money. #RiskReward must be understood before investing. Most significant feature of investing - Do what you understand, understand what you do.

The IPO consists of a fresh issue of 21crore shares and an offer for sale (OFS) of nearly 26.6 crore shares. Share allotment is expected on Thursday, 9 October, with the successful bidder’s shares credited to their demat accounts by Friday, 10 October. The listing on both BSE and NSE is scheduled on Monday, 13 October. The grey market is already presenting a first-class of Rs. 24-26 per share, indicating possible gains of around 8% for early investors.