Tata Capital, the financial services arm of the Tata Group, is launching its initial public offering (IPO) on October 6, 2025. The IPO will remain open for subscription until October 8, 2025. The anchor investor bidding round will take place on October 3, 2025. The IPO includes a fresh issue of shares and an offer for sale by existing shareholders.
Offer Details
The IPO comprises up to 21 crore (210 million) new shares, along with an offer for sale of up to 26.58 crore (265.8 million) shares by existing shareholders. This brings the total offer to over 47.58 crore (475.8 million) shares for public bidding. Tata Sons Private Limited, the promoter, will offload 23 crore (230 million) shares, while investor International Finance Corporation (IFC) will sell over 3.58 crore (35.8 million) shares. The face value of each share is ₹10.
The IPO size is estimated to be ₹17,200 crore. The price band for the IPO is likely to be announced on Monday, September 29, 2025. The company will announce the issue price at a later date. However, the updated draft red herring prospectus (UDRHP) suggests the weighted average cost of acquisition per equity share is ₹34 for Tata Capital and ₹25 for IFC.
Tentative Dates
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for the Tata Capital IPO has commenced. As of September 27, 2025, the GMP is ₹30. This means the estimated listing price is ₹30 above the IPO price.
Lot Size
The lot size and minimum order quantity for the IPO are yet to be announced.
Registrar
MUFG Intime India Private Limited is the registrar for the IPO.
Lead Managers
The book running lead managers (BRLMs) for the issue are Kotak Mahindra Capital Company Limited, Axis Capital Limited, BNP Paribas, HDFC Bank Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, IIFL Capital Services Limited, J.P. Morgan India Private, and SBI Capital Markets Limited.
Financial Performance
In Q1FY26, Tata Capital reported a net profit of ₹1,041 crore, more than double the ₹472 crore earned a year earlier. Total income climbed to ₹7,692 crore from ₹6,557 crore in the June 2024 quarter. As of June 30, 2025, Tata Capital is the third largest diversified NBFC in India with Total Gross Loans of INR 2,33,400 crore.
Offer Objectives
The company plans to use the net proceeds from the IPO to augment its Tier – I capital base to meet future capital requirements, including onward lending.
Concerns
The unlisted shares of Tata Capital have experienced a decline, falling 35% from their April peak of ₹1,125 to around ₹735. This decline is attributed to weak market sentiment in the financial sector, challenges in price discovery within unlisted markets, and concerns over Tata Capital's valuations.
