Tata Capital IPO coming in October? 8 things to know about Tata Group’s Rs 17,200 crore issue

Tata Capital, the flagship financial services arm of the Tata Group, is gearing up for India’s largest financial-sector IPO of 2025, with bidding set to open on Monday, October 6, and close on Wednesday, October 8. The company filed its red herring prospectus with Sebi and the bourses on September 26, moving a step closer to a listing that could value the NBFC at roughly $18 billion.

IPO size and structure

The offer comprises a fresh issue of 21 crore equity shares of Rs 10 each, alongside an offer for sale of 26.58 crore shares by existing shareholders. Tata Sons will offload 23 crore shares, while the International Finance Corporation (IFC) plans to divest 3.58 crore shares. The Anchor investor bidding is scheduled for Friday, October 3.

Grey market activity

Tata Capital shares have begun trading in the grey market at Rs 29 per share. Since the price band has not yet been announced, the actual premium over the issue price remains uncertain.

Record-breaking scale

At nearly Rs 17,200 crore, this IPO is expected to be the largest financial sector offering in India this year, highlighting the Tata Group’s significant presence in capital markets.

Use of proceeds

Funds raised will strengthen Tata Capital’s Tier-1 capital base, supporting onward lending and future capital requirements.

RBI listing mandate

The IPO also fulfils the Reserve Bank of India’s mandate for upper-layer NBFCs to list within three years of meeting the prescribed thresholds.

Financial performance

Tata Capital reported a profit after tax (PAT) of Rs 3,655 crore in FY25 and serves over 70 lakh customers across 25 lending products.

Valuation outlook

With an anticipated valuation of around $18 billion, Tata Capital is positioned to become one of India’s most valuable non-banking financial companies.

Unlisted share performance

As of Sunday, September 28, unlisted shares of Tata Capital are trading at Rs 735, about 33% below the 52-week high of Rs 1,095 reached in September 2024.

Street analysts and investors are watching closely, with expectations running high given the IPO’s record scale and the Tata Group brand.

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