Tata Capital IPO seeks to raise up to ₹15,511 crore by offering new shares in a price band of ₹310-326 apiece, but the GMP is even higher.
Tata Capital Ltd. is set to launch India’s biggest IPO of 2025 to make the most of the investor demand for new shares in the world’s third largest stock market.
The Tata Capital IPO, the first from the stable of the salt-to-software conglomerate since Tata Technologies Ltd.’s in December 2023, seeks to raise up to ₹15,511 crore by offering new shares as well those held by promoters in a price band of ₹310-326 apiece. The demand in the grey market is skyrocketing, more than one week before the actual launch of the offering.
Against that backdrop, here’s a look at the key details of the Tata Capital IPO:
1. Dates: The IPO opens for subscription on 6 October 2025 and closes on 8 October 2025 for retail, high networth individuals and other categories. The anchor placement is scheduled for 3 October 2025.
2. Issue Size & Structure: The Tata Capital IPO comprises a fresh issue of 21.00 crore equity shares, plus an offer for sale of 26.58 crore shares, making a combined offering of 47.58 crore shares. Within the OFS, Tata Sons Pvt. Ltd. plans to offload approximately 23 crore shares, while World Bank’s International Finance Corporation will divest about 3.58 crore shares.
3. Estimated Size & Valuation: The IPO size is pegged at around ₹15,511 crore in aggregate value. The post-money valuation of Tata Capital could fall in the range of $16-18 billion ( ₹1.4-1.6 lakh crore) depending on the final pricing.
4. Price Band & Grey Market Premium (GMP): The price band is set at ₹310-326 apiece with a face value of ₹10 each. The Tata Capital IPO GMP is seen at ₹29/share in the unofficial or unlisted grey market, according to Investor Gain, with a low of ₹25/share and a high of ₹31/share. Since the actual listing has yet to happen, the actual premium remains speculative.
5. Regulatory Mandate & Listing: Tata Capital is classified as an “upper-layer NBFC”, or non-banking financial company, which is mandated by the Reserve Bank of India to be publicly listed within a certain timeline. The IPO helps the company comply with the regulation.
6. Business Profile & Scale: Tata Capital is a diversified financial services platform under the Tata Group, offering consumer loans, commercial financing, wealth management, and more. In FY25, the company clocked a net profit of ₹3,655.02 crore, on the back of revenue that stood at ₹28,369.87 crore. The NBFC has 1,496 branches in India.
7. Use Of Proceeds: The proceeds from the fresh issue portion are intended largely for augmenting Tier-I capital, to support onward lending, future capital needs, and possibly balance sheet strengthening. The OFS proceeds go to the existing shareholders and don’t accrue to the company.
8. Allocation/Reservation/Investor Categories: Preliminary indications suggest the investor slab allocations would follow standard norms:
- Retail ~ 35%
- Non-Institutional (HNI / NII) ~ 15%
- Qualified Institutional Buyers (QIB) ~ 50%
The “Anchor Investor” portion is part of the QIB segment but set aside earlier.
9. Key Dates after Subscription: After the Tata Capital IPO closes on 8 October, the basis of allotment is expected around 9 October. Refunds to unsuccessful applicants and crediting of shares to demat accounts may also happen around 10 October. The tentative listing date is October 13, 2025 on the BSE and NSE.
10. Risks, Sentiment & Market Watch: Here’s a look at the key risks associated with the Tata Capital IPO, according to its draft red-herring prospectus.
- Because this is a very large issue, demand across QIB, HNI and retail categories will be closely watched. Even small variances in subscription can shift listing outcomes.
- The GMP is a sentiment signal, not a guarantee. Grey market trading is unofficial and volatile.
- The final valuation (price band) and anchor investor support will heavily influence listing gains or losses.
- Comparisons with listed NBFC/financial services peers (such as Bajaj Finance, Shriram Finance etc.) will be a key benchmark for investors.
- Macroeconomic factors (interest rates, credit growth outlook, NBFC sector stress) may also weigh on investor appetite.
The article originally appeared on Hindustan Times
