Tata Capital IPO Price Band at Rs 310–326 per Share
Largest IPO of 2025 aims to raise fresh capital and meet RBI listing mandate for NBFCs
Mumbai: Tata Capital, the financial services arm of the Tata Group, will hit the capital markets with its initial public offering (IPO) from
October 6-8, with anchor bidding slated for October 3. The largest IPO of 2025 is expected to raise about Rs 15512, valuing the
Non-banking finance company at Rs 1.31-1.38 lakh crore based on the price band between Rs 310-326 a share.
This would be the biggest IPO of 2025 so far and among the largest in India, following Hyundai Motor India, LIC, and One97 Communications, the parent company of payments aggregator Paytm. The IPO will comprise of a fresh issue of up to 21 crore equity shares, which carry a face value of Rs 10 each, while the rest will be an Offer For Sale (OFS) component of 26.58 crore equity shares, where promoter Tata Sons will offload 23 crore shares and International Finance Corporation will divest 3.58 crore shares. Currently, Tata Sons holds an 88.6 per cent stake in Tata Capital, while IFC owns 1.8 per cent holding. The Company proposes to utilize the net proceeds from the Fresh Issue towards augmenting its Tier-I capital base to meet the Company’s future capital requirements, including onward lending (the “Object of the Offer”). Investors can invest in a minimum bid lot of 46 shares, which will entail an investment of Rs 14,996 per lot, and in multiples of 46 thereof.
The IPO is being undertaken in line with the Reserve Bank of India's (RBI) listing mandate for upper-layer NBFCs, which requires them to be listed within three years of classification. Tata Capital was designated as an upper-layer NBFC in September 2022.
Not more than 50 per cent of the total number of shares on offer are reserved for Qualified Institutional Bidders (QIB), while 15 per cent is for Non-Institutional Investors. The remaining 35 per cent is earmarked for retail investors. The employee portion has been reserved up to 1,200,000 equity shares. Tata Capital's share price is likely to be listed on BSE and NSE on Monday, October 13.
Axis Capital, Kotak Mahindra Capital, BNP Paribas, Citigroup, HDFC Bank, HSBC Securities and Capital Markets, ICICI Securities, IIFL
Capital Services, JPMorgan and SBI Capital Markets are the book-running lead managers for the IPO.
