Tata Capital, one of India’s leading non-banking financial companies (NBFCs), is set to make a significant debut on the stock market. The company’s Initial Public Offering (IPO) is scheduled to open on October 6, 2025, with a price band fixed between ₹310 and ₹326 per equity share. This move aims to bolster Tata Capital’s Tier-1 capital, positioning the company for future growth and lending activities. The listing is expected on October 13, 2025.
Tata Capital IPO Price Band and Lot Size
The floor price for the IPO is ₹310 per share, while the cap price is ₹326 per share, reflecting a valuation of 31.0x to 32.6x of the face value of ₹10. Investors can subscribe to the IPO in lots of 46 shares and in multiples thereof.
Key Dates to Remember
- Anchor Investor Allocation: October 3, 2025
- IPO Subscription Open: October 6, 2025
- IPO Subscription Close: October 8, 2025
- Basis of Allotment: October 9, 2025
- Refund Initiation & Share Credit: October 10, 2025
- Expected Listing on BSE & NSE: October 13, 2025
Share Reservation
The Tata Capital IPO has strategically allocated shares to different investor categories:
- Qualified Institutional Buyers (QIBs): Up to 50% of the issue
- Non-Institutional Investors (NIIs): At least 15%
- Retail Investors: Minimum 35%
- Employees: Up to 12 lakh equity shares
Issue Details
The IPO consists of 47.58 crore shares, divided into a new issue of 21 crore shares and an Offer for Sale (OFS) of 26.58 crore shares. Under the OFS:
- Tata Sons will sell 23 crore shares
- International Finance Corporation (IFC) will sell 3.58 crore shares
Currently, Tata Sons holds an 88.6% stake in Tata Capital, while IFC holds 1.8%.
Purpose of the IPO
The funds raised through the IPO will primarily strengthen Tier-1 capital, enabling Tata Capital to expand its lending operations and meet future capital requirements. This move aligns with RBI regulations, which mandate that upper-layer NBFCs be listed within three years of classification. Tata Capital was classified as an upper-layer NBFC in September 2022.
Lead Managers
The IPO is underwritten by a consortium of leading financial institutions, including:
- Axis Capital
- Kotak Mahindra Capital Company
- BNP Paribas
- HDFC Bank
- HSBC Securities and Capital Markets (India) Private Limited
- Citigroup Global Markets India Private Limited
- ICICI Securities
- IIFL Capital Services
- SBI Capital Markets
- J.P. Morgan India
Tata Capital: Company Overview
Tata Capital has served over 7 million customers by March 31, 2025, offering more than 25 lending options for a diverse clientele, including employed individuals, self-employed workers, entrepreneurs, small enterprises, SMEs, and large corporations.
Apart from lending, the company distributes third-party products like insurance and credit cards, offers wealth management services, and operates as a sponsor and investment manager for private equity funds.
Financial Performance
- Revenue FY25: ₹28,313 crore (up from ₹18,175 crore in FY24)
- Profit After Tax FY25: ₹3,655 crore (up from ₹3,327 crore in FY24)
Peer Comparison
According to the red herring prospectus (RHP), Tata Capital’s peers include:
- Bajaj Finance Ltd: P/E 37.8
- Shriram Finance Ltd: P/E 300.3
- Cholamandalam Investment & Finance: P/E 31.5
- L&T Finance Ltd: P/E 23.1
- Sundaram Finance Ltd: P/E 26.9
- HDB Financial Services Ltd: P/E 28.1
Key Highlights
- IPO Price Band: ₹310-₹326 per share
- Subscription Dates: October 6-8, 2025
- Listing Date: October 13, 2025
- Lot Size: 46 shares
- Total Shares: 47.58 crore (21 crore new + 26.58 crore OFS)
- Funds to Enhance Tier-1 Capital
- Reserved Allocation: 50% QIB, 15% NII, 35% Retail, Employees up to 12 lakh shares
Summary
Tata Capital’s IPO represents a strategic move for one of India’s prominent NBFCs to enhance its capital structure and expand operations. With a robust financial track record, diversified offerings, and strong backing by Tata Sons and IFC, this IPO presents an opportunity for investors seeking exposure to a well-established financial institution. Interested investors should carefully assess the IPO details, subscription dates, and financial health before making investment decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to conduct their own research and consult with a financial advisor before investing.