Tata Capital IPO: Key Dates, Lot Size, and Rs. 15,512 Crore Issue Details

Tata Capital Limited, the Tata Group's financial services company, is preparing for its IPO. The price band for the issue has been fixed at Rs. 310-Rs. 326 per equity share, which gives it an approximate valuation of $1.75 billion (Rs. 15,511.9 crore), targeting a market capitalization of close to $15 billion.

IPO Timeline and Structure

IPO will open for subscription on October 6 and close on October 8, with the anchor book opening on October 3. Each lot will consist of 46 shares. The basis of allotment is scheduled for October 9, refunds and credits to demat accounts on October 10, while listing on both the BSE and NSE is expected on October 13.

The offer comprises 47.58 crore shares, including a fresh issue of 21 crore shares worth around Rs. 6,846 crore and an offer for sale (OFS) of 26.58 crore shares aggregating to about Rs. 8,666 crore. 

Promoter Tata Sons will offload up to 23 crore shares, while investor International Finance Corporation (IFC) will sell about 3.58 crore shares. Post-issue, Tata Sons’ stake will reduce from 88.6%, and IFC’s from 1.8%.

Allocation Breakdown

IPO follows SEBI requirements with 50% of the net offer reserved for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for Non-Institutional Investors (NIIs). Tata Capital employees can subscribe to a maximum of 1.2 million shares.

Purpose of the Issue

The proceeds from the fresh share sale will be used to strengthen Tata Capital’s Tier-1 capital base, enabling the company to support future lending activities and meet growth requirements. Importantly, the IPO also satisfies the Reserve Bank of India’s mandate requiring ‘upper-layer’ NBFCs to list within three years of classification. 

Company Profile and Financials

Established in 2007, Tata Capital serves more than 7 million customers with a portfolio of more than 25 financial products, spanning consumer loans, SME financing, corporate lending, wealth management, insurance distribution, and credit cards. The company also acts as the investment manager for private equity funds.

In FY25, the company reported a profit after tax (PAT) of Rs. 3,655 crore, up from Rs. 3,327 crore in FY24. The company's revenue rose to Rs. 28,313 crore from Rs. 18,175 crore a year earlier, indicating strong growth momentum.

Also Read: Tata Capital’s IPO: Check Valuation, Subscription Timelines, and Investor Sentiment

Outlook

The Tata Capital IPO will be closely watched by investors as it is the first major listing from the Tata Group since Tata Technologies in November 2023. The robust brand strength, diversified portfolio, and listing requirements, the IPO is expected to attract significant investor interest, both retail and institutional.