Tata Capital IPO: Tata group firm to raise ₹15,500 cr at ₹310-326 per share; CY25’s biggest issue

Tata Capital, the financial services arm of the Tata group, has unveiled the price band for its upcoming initial public offering (IPO). 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). The anchor book size is estimated to be around ₹4,642 crore.

If successful, this will be the largest 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 highly anticipated IPO will open for bidding on October 6 and close on October 8. The anchor book will open for a day on October 3, while Tata Capital shares are expected to debut on the BSE and NSE on October 13.

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 and in multiples thereafter, requiring a minimum retail investment of ₹14,996 at the upper price band.

According to 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.

The Tata Capital IPO comes just in time to meet the Reserve Bank of India’s listing deadline. The NBFC was originally required to list its shares on the stock exchanges by the end of September, but the deadline has been extended, giving the company until the end of October to complete the process.

On the earnings front, Tata Capital posted robust growth in the financial year ending March 31, 2025. The revenue surged 56% to ₹28,370 crore, while PAT rose 10% to ₹3,655 crore compared with ₹3,327 crore in FY24. EBITDA stood at ₹20,338 crore, up from ₹14,248 crore in the previous year. For the quarter ended June 30, 2025, the company reported total income of ₹7,692 crore and PAT of ₹1,041 crore.

As of March 31, 2025, the Tata group firm’s net worth stood at ₹32,588 crore, with reserves and surplus climbing to ₹24,299 crore. The total assets grew to ₹2.48 lakh crore, from ₹1.77 lakh crore a year ago, while total borrowings rose to ₹2.08 lakh crore.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)