Tata Capital Ltd., the financial services arm of the Tata Group, is set to launch India’s largest-ever IPO by a non-banking financial company (NBFC), aiming to raise approximately ₹15,512 crore (around $1.75 billion). This move also marks the Tata Group’s most significant initial public offering to date.

📅 Key IPO Dates

• Anchor Investor Bidding: October 3, 2025
• Subscription Period: October 6 – October 8, 2025
• Allotment Finalization: October 9, 2025
• Refunds Initiated: October 10, 2025
• Shares Credited to Demat Accounts: October 10, 2025
• Listing on BSE & NSE: October 13, 2025

💰 Issue Details

• Price Band: ₹310 – ₹326 per share (face value: ₹10)
• Lot Size: 46 shares (totaling ₹14,996 per lot)
• Issue Composition:
  • Fresh Issue: 21 crore shares
  • Offer for Sale (OFS): 26.58 crore shares
  • Total Shares on Offer: 47.58 crore
• Valuation: Approximately ₹1.38 lakh crore (₹13,800 crore) at the upper end of the price band
• Share Allocation:
  • Qualified Institutional Buyers (QIBs): 50%
  • Non-Institutional Investors (NIIs): 15%
  • Retail Investors: 35%
  • Employee Reservation: Up to 1.2 million shares

📉 Unlisted Market Impact

The IPO price band is significantly lower than Tata Capital’s unlisted market price, which peaked at around ₹1,125 per share. This pricing has led to concerns among unlisted shareholders, with potential losses of up to 70% if they choose to exit at the IPO price.

🏢 About Tata Capital

Established in 2007, Tata Capital offers a wide range of financial services, including commercial finance, consumer loans, wealth management, and distribution of Tata Cards. The company is a subsidiary of Tata Sons Limited and operates as a non-banking financial company (NBFC).

For more detailed information, you can refer to the official prospectus or consult with a financial advisor to assess the investment’s suitability for your portfolio.

📊 Financial Highlights

• Profit After Tax (PAT): ₹3,664.66 crore for FY25, marking a consistent upward trajectory from ₹3,029.2 crore in FY23.
• Return on Equity (RoE): 12.6% in FY25, indicating efficient utilization of shareholder equity.
• Total Income: ₹76,916.5 million in Q1 FY26, reflecting robust revenue generation.
• Branch Network Growth: Expanded from 567 branches in FY23 to 1,496 in FY25, demonstrating a 66.6% compound annual growth rate (CAGR).
• Digital Engagement: Over 21.9 million mobile app downloads, highlighting the company’s digital reach.

📈 Valuation & Pricing Strategy

• Valuation: The IPO is priced between ₹310 and ₹326 per share, valuing Tata Capital at approximately ₹1.38 lakh crore (₹1.38 trillion).
• Price-to-Book (P/B) Ratio: At the upper end of the price band, the P/B ratio is 5.2x, compared to peers like Bajaj Finance at 6.4x and Shriram Finance at 2x.
• Unlisted Market Comparison: The IPO price represents a significant discount compared to the unlisted market price, which was around ₹1,125 per share, leading to concerns among unlisted investors.

✅ Strengths

1. Strong Parentage
   • Part of the Tata Group, one of India’s most trusted and diversified conglomerates.
   • Adds credibility and investor confidence.
2. Market Leader in NBFC Sector
   • Wide range of financial services: commercial finance, consumer loans, wealth management, Tata Cards distribution.
   • Established presence in retail and corporate segments.
3. Robust Financial Performance
   • PAT (FY25): ₹3,664.66 crore, up from ₹3,029.2 crore in FY23.
   • RoE: 12.6%, showing effective utilization of equity.
   • Strong revenue growth and expanding branch network (from 567 in FY23 to 1,496 in FY25).
4. Digital Presence
   • Over 21.9 million app downloads, indicating strong digital engagement.
   • Focus on digital platforms enhances scalability and reduces operational costs.
5. Reasonable IPO Pricing
   • Price band ₹310–₹326 is attractive to retail investors compared to unlisted market price (~₹1,125).
   • Creates potential listing gains.

⚠️ Weaknesses / Risks

1. Discount vs Unlisted Price
   • IPO price is 70% lower than unlisted market price, which may discourage existing shareholders.
2. NBFC Sector Vulnerability
   • Exposure to credit risks in consumer and corporate lending.
   • Sensitive to interest rate changes and economic slowdown.
3. Competition
   • Faces stiff competition from established NBFCs like Bajaj Finance, Shriram Finance, and private banks.
   • High competition may pressure margins and market share.
4. Regulatory Risk
   • NBFCs are highly regulated; any changes in RBI guidelines or capital requirements may affect profitability.

Tata Capital Ltd. IPO FAQs

1. What is Tata Capital Ltd. IPO?

• Tata Capital Ltd. IPO is the initial public offering of the Tata Group’s financial services arm to raise funds from the public.

2. What is the issue size of the IPO?

• The IPO aims to raise ₹15,511.87 crore (~$1.75 billion), making it the largest-ever IPO by an NBFC in India.

3. What is the price band?

• ₹310 – ₹326 per share (Face value: ₹10 per share).

4. What is the lot size for the IPO?

• 46 shares per lot, totaling ₹14,996 at the upper price band.

5. When is the IPO subscription period?

• October 6 – October 8, 2025.

6. When will the IPO be listed?

• Expected listing on BSE and NSE on October 13, 2025.