Tata Capital, the lending arm of Tata Sons, has announced the price band for its much-anticipated initial public offering (IPO) at ₹310–326 per share (face value ₹10). The IPO will open for subscription on October 6 and close on October 8, with anchor investors’ allocation scheduled for October 3. The shares will be listed on both the BSE and NSE on October 13.
The offer comprises a fresh issue of 21 crore shares to raise capital for Tier-1 capital augmentation, alongside an offer for sale (OFS) of 26.58 crore shares, with Tata Sons offloading 23 crore shares and the International Finance Corporation (IFC) selling 3.58 crore shares.
IPO Structure and Investor Allocation
The lot size for the IPO is 46 shares, and investors can bid in multiples of this lot. Up to 50% of the issue is reserved for qualified institutional buyers (QIBs), a minimum of 15% for non-institutional investors (NIIs), and 35% for retail investors. Additionally, up to 12 lakh shares have been earmarked for employees.
Financial Strength and Performance
Tata Capital has reported a profit after tax (PAT) of ₹3,655 crore in FY25, up from ₹3,327 crore in FY24. Revenues surged to ₹28,313 crore from ₹18,175 crore in the previous year, reflecting the company’s strong growth trajectory. Serving over 7 million customers, Tata Capital offers more than 25 lending products for individuals, SMEs, and corporates, along with services in insurance, credit cards, wealth management, and private equity fund distribution.
Peer Comparison
According to the Red Herring Prospectus (RHP), listed peers include Bajaj Finance (P/E: 37.8), Shriram Finance (P/E: 300.3), Cholamandalam Investment (P/E: 31.5), L&T Finance (P/E: 23.1), Sundaram Finance (P/E: 26.9), and HDB Financial Services (P/E: 28.1).
Use of Proceeds
Proceeds from the fresh issue will be used primarily to strengthen Tata Capital’s Tier-1 capital, supporting its lending expansion and future growth plans. The OFS component will accrue entirely to selling shareholders.
Listing Timeline
- Basis of Allotment: October 9
- Refunds & Demat Credit: October 10
- Listing: October 13 on BSE and NSE
The IPO is being managed by a consortium of leading investment banks, including Axis Capital, Kotak Mahindra Capital, BNP Paribas, HDFC Bank, HSBC, Citigroup, ICICI Securities, IIFL, SBI Capital Markets, and J.P. Morgan India.
In summary: Tata Capital’s IPO provides investors an opportunity to participate in the growth of a large, diversified NBFC with a strong track record, robust revenue growth, and a pan-India presence. The fresh issue proceeds will strengthen its capital base, paving the way for further lending expansion and operational growth.
Disclaimer:
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