Tata Capital IPO to fetch ₹6,716-cr windfall for Tata Sons via share sale

Don't want to miss the best from Business Standard?

Tata Capital IPO: Tata Sons is poised to pocket a gain of whopping ₹6,716 crore from the initial public offering (IPO) of Tata Capital, the flagship Non-Banking Financial Company (NBFC) of the Tata Group. This marks the conglomerate’s first public market offering in nearly two years, following the successful listing of Tata Technologies in November 2024.

 

Tata Capital is set to launch its maiden share sale on Monday, October 6, 2025, through which it aims to raise a total of ₹15,511.87 crore. According to the Red Herring Prospectus (RHP) filed with market regulator, the offering will comprise a fresh equity issue worth ₹6,846 crore, along with an Offer for Sale (OFS). Under the OFS, promoter Tata Sons will divest 230 million equity shares, while International Finance Corporation (IFC), an existing shareholder, will sell approximately 35.82 million equity shares. 

Source: Company's RHP

       

          Tata Capital has fixed the IPO price band at ₹310 to ₹326 per share. If the IPO is fully subscribed at the upper end of the range, Tata Sons is expected to raise around ₹7,498 crore from its portion of the OFS. Meanwhile, Tata Sons’ average acquisition cost for these shares stands at ₹34 per share, amounting to a total acquisition cost of approximately ₹782 crore.  Based on these figures, the transaction is expected to generate a profit of approximately ₹6,716 crore for Tata Sons, including payable taxes, if applicable.  ALSO READ | WeWork India sets IPO price band at ₹615-648; check key details here

Tata Capital IPO details

The public offering will open for subscription on Monday, October 6, 2025, and close on Wednesday, October 8, 2025. As the company has set lot size of 46 shares, investors can bid for a minimum of 46 shares and in multiples thereof. For retail investors, this means an investment of ₹14,996 for a single lot at the upper end of the price range. Additionally, retail investors can bid for up to 13 lots, or 598 shares, for a maximum bid of under ₹200,000.

 

The shares of Tata Capital are expected to debut on the stock exchanges on Monday, October 13, 2025, following the completion of the IPO process.

 

Tata Capital has appointed a group of investment banks as the book running lead managers for the IPO, including Kotak Mahindra Capital Company, HSBC Securities and Capital Markets (India), Axis Capital, ICICI Securities, BNP Paribas, IIFL Capital Services (formerly IIFL Securities), Citigroup Global Markets India, and HDFC Bank. 

 

Further, MUFG Intime India, formerly known as Link Intime India, will serve as the registrar to the issue.

 

Tata Capital will not receive any proceeds from the Offer for Sale (OFS) portion of the IPO. According to the RHP, each of the selling shareholders, including Tata Sons and the International Finance Corporation (IFC), will receive their respective portion of the proceeds from the OFS after deducting their share of offering-related expenses and applicable taxes.

 

The funds raised through the fresh issue, the company said, will be used to strengthen Tata Capital’s Tier-I capital base to support the company’s future growth and lending activities. A portion of the proceeds will also be allocated toward covering the expenses related to the IPO.  ALSO READ | Fabtech Tech IPO opens today: Check price band, GMP, dates, other details

About Tata Capital

Tata Capital is a flagship financial services company of the Tata group and a subsidiary of Tata Sons Private Limited, the holding company of the Tata group and the Promoter of our Company. According to the CRISIL Report, the company is the third-largest diversified NBFC in India with Total Gross Loans of ₹2,334.0 billion as at June 30, 2025, and is among the fastest-growing large diversified NBFCs in India based on growth in Total Gross Loans, with Total Gross Loans growing at a CAGR of 37.3 per cent from March 31, 2023, to March 31, 2025. Since commencing its lending operations in 2007, the company has served 7.3 million customers up to June 30, 2025. Through its suite of 25+ lending products (the “Lending Business”), the company caters to a diverse customer base comprising salaried and self-employed individuals, entrepreneurs, small businesses, small and medium enterprises, and corporates.