IPO size and structure
The offer comprises a fresh issue of 21 crore equity shares of Rs 10 each, alongside an offer for sale of 26.58 crore shares by existing shareholders. Tata Sons will offload 23 crore shares, while the International Finance Corporation (IFC) plans to divest 3.58 crore shares. The Anchor investor bidding is scheduled for Friday, October 3.
Grey market activity
Tata Capital shares have begun trading in the grey market at Rs 29 per share. Since the price band has not yet been announced, the actual premium over the issue price remains uncertain.
Record-breaking scale
At nearly Rs 17,200 crore, this IPO is expected to be the largest financial sector offering in India this year, highlighting the Tata Group’s significant presence in capital markets.
Use of proceeds
Funds raised will strengthen Tata Capital’s Tier-1 capital base, supporting onward lending and future capital requirements.
RBI listing mandate
The IPO also fulfils the Reserve Bank of India’s mandate for upper-layer NBFCs to list within three years of meeting the prescribed thresholds.
Financial performance
Tata Capital reported a profit after tax (PAT) of Rs 3,655 crore in FY25 and serves over 70 lakh customers across 25 lending products.
Valuation outlook
With an anticipated valuation of around $18 billion, Tata Capital is positioned to become one of India’s most valuable non-banking financial companies.
Unlisted share performance
As of Sunday, September 28, unlisted shares of Tata Capital are trading at Rs 735, about 33% below the 52-week high of Rs 1,095 reached in September 2024.
Street analysts and investors are watching closely, with expectations running high given the IPO’s record scale and the Tata Group brand.
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