Tata Capital IPO Overview
In order to earn ₹17,200 crore through a fresh issuance and offer-for-sale, Tata Capital is preparing India's largest initial public offering (IPO) of 2025. The price range for the shares is set at ₹310–₹326 per. On October 6, the IPO goes live for subscriptions, and on October 13, it is anticipated to go public. The company's Tier-1 capital will be strengthened with the proceeds, enabling future lending and expansion while also meeting the RBI's listing requirement for leading NBFCs. In FY25, Tata Capital declared a net profit of ₹3,655 crore and services more than 70 lakh consumers.
MARKET NEWS
9/29/20252 min read
An important turning point for the Tata Group and the nation's financial industry will be reached when Tata Capital launches India's biggest initial public offering (IPO) of 2025.
IPO Size and Structure
The Tata Capital IPO is the largest public offering of the year with a target of raising about ₹17,200 crore. With Tata Sons reducing its interest by selling 23 crore shares and the International Finance Corporation (IFC) selling 3.58 crore shares, the issue consists of a new offering of 21 crore shares and an offer-for-sale (OFS) of 26.58 crore shares. The IPO satisfies the RBI's requirement that top-tier NBFCs go public within three years.
Price Band and Valuation
At a sharp reduction to the top price of its unlisted shares earlier this year, Tata Capital has established a price range of ₹310–₹326 per share, indicating an almost 70% decrease from those levels. At the upper end of the spectrum, Tata Capital's estimated valuation approaches $18 billion, with the IPO amount anticipated to be around ₹15,511 crore.
Key Dates
Subscription Window: October 6–8, 2025
Allotment: Finalization on October 9, 2025
Listing Date: Shares expected to debut on the NSE and BSE on October 13, 2025.
Registrar: MUFG Intime India
Lead Manager: Kotak Mahindra Capital
Business Highlights
As of March 2025, Tata Capital, India's third-largest diversified non-banking financial firm (NBFC), had 1,496 branches nationally and served over 70 lakh consumers. With a profit after tax (PAT) of ₹3,655 crore in FY25, the company demonstrated solid financial development and a significant presence in corporate, SME, and retail lending.
Purpose and Outlook
The primary goals of the funds raised are to facilitate future expansion, ensure regulatory compliance, promote onward lending, and increase Tata Capital's Tier-1 capital. The IPO is anticipated to attract substantial investor interest and set a standard for future financial sector listings due to the size of the offering, Tata Capital's strong performance, and the brand trust associated with Tata.
Market Sentiment
Although the actual premium will depend on market conditions closer to listing, grey market premiums for Tata Capital's IPO have begun to develop, showing early investor interest. Given that the price band announcement indicates a significant fall from the previous unlisted market highs, retail investors are particularly cautious.