Tata Capital raises ₹4,641 crore from anchor investors ahead of IPO

Tata Capital secured Rs 4,641 crore from anchor investors including LIC, mutual funds and global institutions ahead of its Rs 15,512-crore IPO, the largest-ever NBFC issue

Tata Capital on Friday allotted 142.4 million shares to anchor investors, raising Rs 4,641 crore. The shares were allotted at Rs 326 apiece, the top end of the price band.

 

Among the prominent anchor investors, Life Insurance Corporation of India (LIC) received the largest allotment of over 21.4 million shares, committing close to Rs 700 crore. Domestic mutual funds accounted for 35.55 per cent of the total anchor allocation, with over 50 million shares distributed across 18 mutual funds and 59 schemes.

 

Notable mutual fund participants included ICICI Prudential, HDFC Mutual Fund, Aditya Birla Sun Life, DSP, Axis Mutual Fund, Nippon India, Edelweiss, Kotak and Motilal Oswal.

 

 

Foreign institutional investors such as Morgan Stanley, Goldman Sachs and the State of Michigan Retirement System also featured prominently among the anchor investors, each receiving substantial allocations.

 

Tata Capital’s Rs 15,512-crore IPO—the fourth largest in the domestic market and the biggest-ever non-banking finance company (NBFC) offering—opens for public subscription on Monday.

 

The IPO comprises a fresh issue of shares worth Rs 6,846 crore, which will be used to augment the company’s capital base. In addition, promoter Tata Sons and the International Finance Corporation (IFC) will offload shares worth Rs 8,666 crore. Following the IPO, Tata Sons’ holding in Tata Capital will decline from 95.6 per cent to 85.5 per cent.

 

Tata Capital’s IPO is the largest public offering ever from the Tata Group and the second from the conglomerate in nearly two decades, after Tata Technologies in November 2023. It is also the biggest IPO in the domestic market since Hyundai Motor India’s record Rs 27,869-crore issue in June 2024.

 

Classified as an “upper layer” NBFC by the Reserve Bank of India (RBI), Tata Capital was mandated to list.

 

Established in 2007, Tata Capital has grown into India’s third-largest NBFC, with a loan book of Rs 2.33 trillion as of June 2025. Its portfolio is diversified, with retail loans accounting for 61.3 per cent, small and medium enterprises (SMEs) 26.2 per cent and corporate loans 12.5 per cent.

 

The recent merger with Tata Motors Finance, a leading commercial vehicle financier with assets under management (AUM) of Rs 36,515 crore as of December 2024, has further strengthened its position. The company holds a “AAA” rating from all domestic agencies.