Tata Capital IPO Launches Today: Key Details to Consider for the Rs 15,512 Crore Offering
Tata Capital has launched its highly anticipated initial public offering (IPO), aiming to raise ₹15,512 crore, making it one of the largest public offerings of 2025. The IPO opened for subscription on October 6 and will remain available until October 8. With a price band set between ₹310 and ₹326 per share, the offering has already seen a 15% subscription rate within the first hour, indicating strong investor interest.
Details of the IPO
The Tata Capital IPO comprises a fresh issue of ₹6,846 crore and an offer for sale (OFS) worth ₹8,666 crore from its promoter, Tata Sons, which holds a 95.6% stake in the non-banking financial company (NBFC). The total offering includes up to 47.58 crore shares, with 21 crore shares being newly issued and 26.58 crore shares available through the OFS, resulting in an 11% dilution of equity. Tata Sons plans to sell up to 23 crore shares, while the International Finance Corporation (IFC) will offload approximately 3.58 crore shares. The proceeds from the fresh issue will be utilized to bolster Tata Capital’s Tier-I capital base and support various corporate purposes.
Market Response and Expectations
The grey market premium (GMP) for the IPO has been modest, hovering around 3% above the issue price. Analysts are optimistic about the offering, with Anand Rathi Share & Stock Brokers giving it a ‘Subscribe’ rating. They cite strong loan-book growth, stable margins, and low credit costs as key factors contributing to their positive outlook. Prashanth Tapse, Senior VP at Mehta Equities, noted that the pricing of the IPO is strategically set below the industry average, providing ample room for potential gains for long-term investors.
Tata Capital’s Financial Performance
Tata Capital has demonstrated robust financial performance, with its profit after tax for FY25 rising to ₹3,655 crore, up from ₹3,327 crore in FY24. Revenue also saw a significant increase, climbing to ₹28,313 crore from ₹18,175 crore the previous year. As of June 2025, the company reported total assets of ₹2.52 lakh crore and gross loans of ₹2.33 lakh crore, positioning it as the third-largest diversified NBFC in India, following Bajaj Finance and Shriram Finance. With a strong balance sheet and a diversified loan portfolio, Tata Capital’s IPO is closely monitored, especially in light of the successful debut of Tata Technologies last year.
The IPO is set to list on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with the allotment date expected on October 9 and the official listing scheduled for October 13.
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