Daijiworld Media Network - Mumbai

Mumbai, Oct 6: Aditya Birla Capital offers a more attractive risk-reward profile compared to soon-to-be-listed Tata Capital, said Vikas Khemani, Founder and CIO of Carnelian Asset Management and Advisors.

Speaking to NDTV Profit, Khemani said that while Tata Capital is a strong company, Aditya Birla Capital stands out in the sector for its superior growth prospects and higher return on assets (RoA).

Khemani’s comments come as Tata Capital’s Initial Public Offering (IPO) opened for subscription on Monday. The company aims to raise over Rs 15,000 crore, making it the largest issue of this calendar year. The subscription closes on October 8, and share allotment is likely to be finalised on October 9.

Reports indicate that unlisted shares of Tata Capital had recently been traded above Rs 1,000, while the IPO price band is in the range of Rs 310 per share.

Commenting on the surge in unlisted share trading, Khemani cautioned investors. “The unlisted market has seen huge traction in the last one to one-and-a-half years. Investors are buying without understanding valuations. We always look at the risk-reward while purchasing,” he said.