Tata Capital's Mega Rs. 17,000 Crore IPO to Launch on October 6: Check All the Details

Tata Capital, the non-banking financial arm of the Tata Group, has some exciting news for those who have been waiting for the IPO launch. According to reports, it is scheduled to begin on October 6 and close on October 8. This is going to be a significant move for India's capital markets.

On September 26, Tata Capital confirmed the news through the red herring prospectus filed with the market regulator, SEBI, and the exchanges. The latest development marks a significant moment for the non-banking financial company sector as it aims to raise nearly Rs. 17,000 crore through the offering. 

What are the Key Details of the Tata Capital IPO?

According to the red herring prospectus (RHP), the company announced, “Please note that the Bid/Offer opens on Monday, October 6, 2025, and closes on Wednesday, October 8, 2025. The Anchor Investor Bidding Date shall be Friday, October 3, 2025.” 

Further, it stated, “The Offer comprises a fresh issue of up to 210,000,000 equity shares of face value of 10 each (‘Equity Shares’) and an offer for sale by certain selling Shareholders of the Company of up to 265,824,280 Equity Shares.”

The IPO aims to raise approximately Rs. 17,000 crore, making it one of the largest IPOs in the financial services sector in India. Raised funds are to be utilized for strengthening the company's capital base to support future lending activities. 

The company has more to disclose regarding the issue price of the shares, the size of the lot, and other details. As the report reveals, 21 crore new shares will be issued in the IPO, which means a total of 47.58 crore shares will be available in the market. The speculated value of one share, however, is around Rs. 10. The IPO will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

What Does This IPO Mean for the NBFC Sector?

Being one of the top financial services companies in the country, Tata Capital's going public will have a significant impact on other NBFCs that aim to follow a similar path. The proceeds from the IPO will be used for capital purposes to lend more into the retail and commercial sectors. 

On the other hand, an IPO would elevate transparency and governance within the company, as it would now be held to the standards applicable to public companies under the law. The perception of NBFCs is expected to improve following this move, particularly after the liquidity concerns that have weighed heavily on them in recent years are addressed.

Also Read: IPOs vs. Secondary Market: Which Offers Better Returns for Investors?

Conclusion: A Strategic Move with Potential Challenges

Tata Capital’s IPO is a strategic move aimed at strengthening its capital base and enhancing its future lending capacity. With the backing of the Tata Group, there’s no doubt about its credibility, which is one of the key factors in attracting investor trust. 

Despite several positive aspects, there are also obstacles to overcome. The success of the IPO depends on multiple factors, including market conditions in the coming days, investor sentiment, and how Tata Group utilizes the raised funds.

Indeed, the IPO is expected to solidify the company’s position in the NBFC sector; however, it also presents the challenge of meeting the expectations of public shareholders. It will be interesting to see whether Tata Capital's IPO can live up to the promise it made.