Tata Capital, the financial services arm of the Tata Group, is set to launch its highly anticipated mega IPO. The initial public offering, valued at Rs 15,511.87 crore, is scheduled to open for subscription from October 6 to October 8. The company is expected to make its market debut on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on October 13. This IPO is poised to be one of the largest from the Tata Group, following the public issue of Tata Technologies.
Also read: IPO Watch: Biggest Market Debuts to Track in India 2025
While the festive season has reportedly seen a muted response from consumers, capital markets and investors are having a busy period with a flurry of IPOs providing opportunities for profit. Tata Capital’s offering is a book-built issue, a mix of a fresh issue of 21 crore shares and an offer for sale (OFS) of 26.58 crore shares. The price band for the shares has been set at Rs 310 to Rs 326.
According to MD Rajiv Sabharwal, the IPO has been structured to be accessible to a wide range of investors. Retail investors can apply for a minimum of 46 shares, with an investment of Rs 14,996 at the upper price band. For small non-institutional investors, the minimum application is 14 lots, which equates to 644 shares worth Rs 2,09,944. Big non-institutional investors are required to apply for a minimum of 67 lots, or 3,082 shares, valued at Rs 10,04,732.
The IPO is expected to propel the company’s market capitalization to Rs 1.38 trillion, making it the largest NBFC IPO in recent times. The strong valuation reflects the company’s robust growth and market position. Speaking on the company’s performance, Tata Capital MD & CEO Rajiv Sabharwal said NBFCs have seen a growth rate of 16-18%, whereas the market rates stand up around 11% which has increased the market share of lending companies. This statement underscores the strong performance of the non-banking financial sector, which has been outperforming the broader market.
The public issue is a strategic move for Tata Capital to capitalize on this growth and further expand its operations. The capital raised from the fresh issue will be used to fund the company’s growth plans and maintain a strong balance sheet. The OFS will allow existing shareholders to divest their stake. This IPO marks a significant milestone for Tata Capital as it seeks to strengthen its position in the competitive financial services landscape and create new avenues for growth and value creation for its stakeholders.
