Tata Capital has announced its much-awaited Initial Public Offering, setting the price band at Rs 310-326 per share. This massive Rs 15,512 crore IPO stands as the largest issue of the year. At the upper end of this range, the company reaches a valuation of approximately Rs 1.38 lakh crore.
The subscription window opens on October 6 and closes on October 8. Anchor book bidding is scheduled for October 3, according to the official announcement. This timeline gives investors a clear window to participate.
The IPO consists of 47.58 crore shares in total. This includes a fresh issue of 21 crore equity shares and an Offer For Sale of 26.58 crore shares. At the maximum price, the issue aims to raise Rs 15,512 crore.
Under the OFS component, Tata Sons will sell 23 crore shares. The International Finance Corporation will divest 3.58 crore shares as part of this offering.
Currently, Tata Sons holds 88.6 percent of Tata Capital. IFC maintains a 1.8 percent stake in the company before the public offering.
Proceeds from this IPO will strengthen the company’s Tier-1 capital base. This funding will support future capital requirements, including onward lending activities.
Tata Capital filed draft papers in April through the confidential pre-filing route. The company secured approval from market regulator Sebi in July for this offering.
This marks the largest public issue in India’s financial sector. It represents the Tata Group’s second public listing in recent years, following Tata Technologies in November 2023.
The IPO complies with RBI’s listing mandate for upper-layer NBFCs. These institutions must list within three years of classification, and Tata Capital was designated in September 2022.
HDB Financial Services went public in June with a Rs 12,500 crore issue. Bajaj Housing Finance, another upper-layer NBFC, had a successful market debut in September 2024.
For FY25, Tata Capital reported a profit after tax of Rs 3,655 crore. This shows growth from Rs 3,327 crore in FY24, while revenue increased sharply to Rs 28,313 crore.
Since starting lending operations in 2007, Tata Capital has served over 7 million customers. The company offers more than 25 lending products to diverse customer segments.
Beyond lending, Tata Capital distributes third-party products like insurance and credit cards. The company also provides wealth management services and manages private equity funds.
Allocation reserves 50 percent for qualified institutional buyers. Retail investors get 35 percent, while non-institutional investors receive the remaining 15 percent.
Tata Capital is expected to make its stock market debut on October 13. This marks a significant milestone for the financial services arm of the Tata Group.
The issue is managed by a consortium of book-running lead managers. This group includes Axis Capital, Kotak Mahindra Capital Company, BNP Paribas, HDFC Bank, and several other major financial institutions.