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News Topical, Digital Desk : Investors have been eagerly awaiting Tata Capital's IPO since the beginning of this year. There has been much speculation about the IPO, as Tata's name is associated with it. Therefore, people are eager to invest in it.
But the IPO doesn't seem to be receiving the same level of support it received before its public issue. The Tata Capital IPO was only 75% subscribed on its second day. But is the low GMP the reason behind this?
A sharp drop in GMP
The IPO, which was once a sensation in the gray market, has now seen its GMP drop to just ₹6. Based on this GMP, this IPO is expected to generate a profit of only 1.84%. Along with the low GMP, its price band has also been set quite low, leading investors to doubt this IPO. However, the primary reason appears to be something else.
What is the main reason?
Within the Tata Group, the allocation of seats on the Tata Sons board is becoming a source of controversy. This board manages the entire group. Two factions have emerged in this matter, one supporting Noel Tata and the other supporting Mehli Mistry. Given this controversial situation, investors are hesitant to invest in the Tata Capital IPO.
Read More: Why is the Tata Capital IPO not fully subscribed yet? Is this the real reason, not GMP?
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