Tata Capital Limited, the financial services arm of the esteemed Tata Group, is set to launch its Initial Public Offering (IPO) on October 6, 2025. This marks a significant milestone as it becomes the largest IPO from the Tata Group to date, aiming to raise approximately ₹15,511 crore.
Key IPO Dates
- IPO Opening Date: October 6, 2025
- IPO Closing Date: October 8, 2025
- Price Band: ₹310 to ₹326 per share
- Issue Size: ₹15,511 crore
- Listing Date: October 13, 2025
- Anchor Investor Bidding: October 3, 2025
Company Overview
Established in 2007, Tata Capital offers a diverse range of financial services, including commercial finance, consumer loans, wealth management, and distribution of Tata Cards. Its subsidiaries, such as Tata Capital Housing Finance and Tata Securities, further enhance its service offerings.
Financial Highlights
In the fiscal year 2024-25, Tata Capital reported:
- Revenue: ₹28,370 crore (up 56% from FY24)
- Profit After Tax (PAT): ₹3,655 crore (10% growth)
- Assets Under Management: ₹2.48 lakh crore
IPO Structure
The IPO comprises:
- Fresh Issue: 21 crore equity shares
- Offer for Sale (OFS): 26.58 crore equity shares
- Tata Sons Pvt. Ltd.: 23 crore shares
- International Finance Corporation (IFC): 3.58 crore shares
Valuation Insights
The IPO sets a price band of ₹310-326 per share, valuing Tata Capital at approximately ₹1.38 lakh crore. This represents a 56% discount compared to its unlisted market valuation, which had peaked at around ₹1,125 per share. This significant discount has raised concerns among unlisted shareholders about potential value erosion.
Market Sentiment
Despite the valuation concerns, the IPO has garnered positive attention in the grey market, with shares trading at a premium of approximately 7%, indicating strong investor interest. Platforms tracking grey market activity report a premium ranging between ₹21 to ₹31 per share, suggesting a potential listing price of ₹347 to ₹357.
Investment Considerations
- Retail Investors: The minimum investment is ₹14,996 for 46 shares at the upper price band.
- Qualified Institutional Buyers (QIBs): 49.87% of the issue reserved.
- Non-Institutional Investors (NIIs): 14.96% reserved.
- Employees: 0.25% reserved.
Conclusion
The Tata Capital IPO presents a significant opportunity for investors looking to engage with a prominent financial services entity. While the valuation offers an attractive entry point, potential investors should weigh the concerns of unlisted shareholders and consider their investment horizon and risk appetite. As always, conducting thorough due diligence and consulting with financial advisors is recommended before making investment decisions.
