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Tata Capital sets IPO price band at Rs 310-326 per share

The ‘upper layer’ NBFC’s IPO consists of a combination of fresh issuance and an offer for sale (OFS), amounting to approximately 47.58 crore equity shares of face value of Rs 10 each.

The issue will open for subscription on October 6, and close on October 8, 2025.

Tata Sons-backed non-banking financial company (NBFC), Tata Capital Ltd, has set a price band of Rs 310 to Rs 326 per equity share for its over Rs 15,000 crore initial public offering (IPO). This primary offering is the largest IPO from the Tata Group to date, and is the largest-ever in the non-banking finance companies (NBFC) segment in the country.

The ‘upper layer’ NBFC’s IPO consists of a combination of fresh issuance and an offer for sale (OFS), amounting to approximately 47.58 crore equity shares of face value of Rs 10 each. The issue will open for subscription on October 6 and close on October 8.

The IPO

At the upper band of the price range, the company aims to raise Rs 15,512 crore through the public offer, implying a valuation of around Rs 1.38 lakh crore.

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The company will be issuing up to 21 crore new shares, amounting to Rs 6,846 crore, and the existing shareholders are looking to offload up to 26.58 crore shares, aggregating to Rs 8,666 crore.

According to analysts, Tata Capital’s price band is attractive and is likely to generate strong interest from investors.

This IPO is the fourth largest IPO in the history of the domestic capital markets. It is also the second public offering from the Tata Group in nearly two decades, following Tata Technologies’ Rs 3,043 crore IPO in November 2023.

The Reserve Bank of India (RBI) has classified Tata Capital as a systemically important NBFC, which requires stricter regulatory adherence. As per the RBI regulations, Tata Capital was required to get listed by September 30, 2025.

Who is selling in the IPO?

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Tata Sons Private Ltd, the promoter of the company, which holds 88.6 per cent share in Tata Capital, is planning to sell up to 23 crore shares in the IPO, while International Finance Corporation (IFC) is selling up to 3.58 crore shares.

Post IPO, Tata Sons ownership in the company will come down to nearly 78 per cent.

How will the proceeds be used?

The company will use the proceeds from the fresh issue to augment its tier-1 capital base to meet its future capital requirements, including onward lending. As of June 30, 2025, the capital adequacy ratio of the company stood at 16.6 per cent, and tier 1 capital was at 12.8 per cent.

When is the issue opening?

The issue will open for subscription on October 6, and close on October 8, 2025. The anchor investor bid period will be on October 3, 2025. Investors can place bids for a minimum of 46 equity shares and in multiples of 46 equity shares thereafter.

Tata Capital’s business

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Tata Capital is the third-largest diversified NBFC in the country. It is primarily engaged in the lending business which comprises retail finance, SME finance and corporate finance.

The company’s gross loan book stood at Rs 2,33,400 crore as of June 2025. Its total gross loans grew at a CAGR of 37.3 per cent from March 31, 2023 to March 31, 2025. The company is focussed retail and SME customers, with loans to such customers forming 87.5 per cent of its total gross loans as at June 30, 2025.