Ahead of the initial public offering (IPO) opening next week, Tata Capital has garnered an overwhelming response from anchor investors. The Tata group company allotted around ₹4,642 crore worth of shares to 68 domestic and global institutional investors, with subscriptions exceeding the allocation by five times.

Top mutual funds that participated in the anchor round included large asset managers such as HDFC Mutual Fund and ICICI Prudential MF, as well as India’s largest life insurer, LIC. Global heavyweights, including Goldman Sachs and Morgan Stanley, among others, have shown keen interest in a piece of anchor book.

The anchor round’s oversubscription has set a strong tone for retail and institutional demand as the IPO opens for retail subscription on October 6 and closes on October 8. Tata Capital shares are expected to debut on the BSE and NSE on October 13.

The leading non-banking financial company (NBFC) has set the price band at ₹310-326 per share and aims to raise ₹15,512 crore at the upper end of the issue price, valuing the company at around ₹1.38 lakh crore (or $16 billion).

If successful, this will be the biggest public issue of 2025, surpassing the ₹12,500-crore IPO of HDB Financial Services, a subsidiary of HDFC Bank, and the biggest since Hyundai Motor India’s record ₹27,870-crore offering last year. It will also mark the Tata Group’s second market debut in recent years, following Tata Technologies’ listing in November 2023.

The issue comprises a fresh issuance of 21 crore equity shares worth ₹6,846 crore and an offer for sale (OFS) of 26.58 crore shares aggregating to ₹8,665.87 crore by existing shareholders.

Under the OFS, Tata Sons, led by N. Chandrasekaran, plans to offload up to 23 crore shares, while the International Finance Corporation (IFC) will divest up to 3.58 crore shares. Currently, promoter entities hold 95.6% of Tata Capital, or 385.55 crore shares, with Tata Sons accounting for the bulk at 88.6%. IFC owns 7.16 crore shares, representing a 1.8% stake.

The lot size is 46 shares, with multiples thereafter, requiring a minimum retail investment of ₹14,996 at the upper price band.

As per the IPO document, 50% of the issue has been reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and the remaining 35% for retail investors. In addition, up to 12 lakh shares have been reserved for employees.