Tata Capital IPO: An Overview
Tata Capital Ltd. is set to launch its initial public offering (IPO) on October 6, 2025, with the issue closing on October 8, 2025, according to the company’s red herring prospectus. The IPO will raise up to Rs 15,511 crore and comprises a fresh issue of up to 21 crore equity shares aggregating up to Rs 6,846 crore and an offer for sale (OFS) of up to 26.6 crore equity shares worth Rs 8,665 crore.
Price Band and Issue Details
The price band for the issue is set at Rs 310-326 per share. Promoter Tata Sons will divest up to 23 crore shares, while International Finance Corporation (IFC) will sell up to 3.6 crore shares through the OFS route. The company will also issue up to 21 crore shares via a primary raise.
Book-Running Lead Managers and Registrar
Kotak Mahindra Capital Company Ltd., Axis Capital Ltd., BNP Paribas, Citigroup Global Markets India Pvt Ltd., HDFC Bank Ltd., HSBC Securities and Capital Markets (India) Private Ltd., ICICI Securities Ltd., IIFL Capital Services Ltd., J.P. Morgan India Private Ltd., SBI Capital Markets Ltd. are all the book-running lead managers, while MUFG Intime India Pvt Ltd. is the registrar.
Investment Details
The lot size for an application is 46 shares, which means the minimum amount of investment required by a retail investor is Rs 14,996 based on the upper price band. Small institutional investors will need to buy a minimum of 14 lots aggregating to 644 shares, which means they will need to invest Rs 2.09 lakh and big institutional investors will have to buy a minimum of 67 lots, that is an investment of at least Rs 10.04 lakh.
Allotment and Listing Details
The allotment of shares to IPO investors will be finalised tentatively on October 9, and the credit to the demat account will be done on October 10. Tata Capital will list on the BSE and NSE on October 13.
Tata Capital’s Financial Performance
In the quarter ended June, the NBFC posted a revenue of Rs 7,665 crore in comparison to Rs 6,546 crore posted in the corresponding period last year. The company’s profit for the quarter more than doubled at Rs 1,041 crore, against Rs 472 crore reported in the quarter ended June 2024.
For fiscal 2025, Tata Capital reported a profit of Rs 3,655 crore, an increase from Rs 3,327 crore in the previous fiscal, while its revenue surged to Rs 28,313 crore from Rs 18,175 crore.
Use of IPO Proceeds
Tata Capital proposes to use the fresh issue proceeds for augmenting its tier–I capital base to meet its ‘future capital requirements, including onward lending,’ arising out of the growth of the business.
Further, a portion of the proceeds from the fresh issue will be used towards meeting offer expenses.
Conclusion
Tata Capital’s IPO is expected to be among the most closely watched offerings of the year, given the company’s position as the financial services arm of the Tata Group. With a strong financial performance and a clear plan for the use of IPO proceeds, Tata Capital is an attractive investment opportunity for investors.
As the Indian stock market continues to evolve, it’s essential for investors to stay informed about upcoming IPOs and their potential impact on the market. Stay up-to-date with the latest Indian stock market news and analysis to make informed investment decisions.
