The wait for the Tata Capital IPO ends on Monday, October 6. This could become the largest IPO of 2025. As of June 2025, Tata Capital’s gross loans stood at ₹233,400 crore.
The company claims to be India’s third-largest diversified NBFC, serving retail and SME customers. Here are the key details you should know.
Issue Size
Tata Capital aims to raise ₹15,511.87 crore from the IPO.
Price Band
The IPO price band is ₹310–326 per share, with a lot size of 46 shares.
Listing Date
Investors can subscribe to the IPO until October 8, with allotment on October 9. Shares are expected to list on BSE and NSE on October 13.
Number of Shares
The IPO will issue new shares worth ₹6,846 crore at the upper price band. The Offer for Sale (OFS) will be ₹8,665.87 crore.
A total of 47.58 crore shares are included, of which 21 crore are new shares and 26.58 crore are existing shares.
Tata Sons will sell 23 crore shares, and the International Finance Corporation will sell 3.58 crore shares.
Anchor Investors
Tata Capital raised ₹4,641.8 crore from 135 anchor investors before the IPO. 14.23 crore shares were allocated at ₹326 per share.
LIC was the largest anchor investor, buying shares worth ₹700 crore (2,14,72,386 shares).
Use of IPO Proceeds
Tata Capital, a subsidiary of Tata Sons (holding 92.83% stake), will use the funds to meet capital requirements, including lending.
Kotak Mahindra Capital, BNP Paribas, and Citigroup Global Markets are the book running lead managers, and MUFG Intime India Pvt. Ltd. is the registrar.
Should You Invest?
Analysts from SBI Securities recommend the IPO, citing:
Tata Group backing
Diversified products and omni-channel distribution
Stable asset quality
Strong credit rating and diversified liabilities
The company’s growth strategy includes expanding products, strengthening distribution, attracting top talent, and optimizing borrowing costs.
Risks
Unsecured loans account for over 20% of the portfolio for three years.
Tata Capital faces 283 criminal cases, creating a contingent liability of ₹765 crore.
At the upper price band, shares trade at 33x earnings and 4.2x book value, higher than peers (average P/E 27.2x, P/B 3.6x).
Gray Market Premium (GMP)
Tata Capital shares are trading lower in the gray market, with a current GMP of ₹7.5, down from ₹28 before the price band announcement.
Financial Performance
Q1 FY26 (Apr–Jun 2025): Net profit ₹1,040.9 crore (up 120.4% YoY), revenue ₹7,664.8 crore (up 17% YoY), net interest income ₹2,866.2 crore (up 16.8% YoY).
FY25: Total income ₹28,369.87 crore (up 56% YoY), net profit ₹3,655.02 crore (up 10% YoY).
Market Context
October 2025 is expected to see record IPO activity, with proceeds likely surpassing $5 billion.
The week starting October 6 will include 5 new IPOs, including Tata Capital and LG Electronics India, and 24 companies scheduled for listing.
