Tata Capital sets Rs 310-326 price band for Rs 15,512 crore IPO, largest listing of 2025
Mumbai: Tata Capital has fixed the price band for its Rs 15,512-crore Initial Public Offering (IPO) at Rs 310-326 per share, setting the stage for the year’s largest public issue.
At the upper end of the band, the non-banking financial company (NBFC) commands a valuation of nearly Rs 1.38 lakh crore.
The issue will open for subscription on October 6 and close on October 8, with anchor bidding on October 3.
The IPO consists of 47.58 crore equity shares, including a fresh issue of 21 crore shares and an Offer for Sale (OFS) of 26.58 crore shares.
Proceeds from the fresh issue will be used to bolster the company’s Tier-1 capital base, ensuring capacity for future lending.
Under the OFS, promoter Tata Sons will sell 23 crore shares, while International Finance Corporation (IFC) will offload 3.58 crore shares. Tata Sons currently owns 88.6 per cent of Tata Capital and IFC holds 1.8 per cent.
This offering will be the largest in India’s financial sector and the Tata Group’s second market debut in recent years after Tata Technologies in 2023. It also fulfills the Reserve Bank of India’s mandate requiring upper-layer NBFCs to be listed within three years of classification. Tata Capital was designated as such in September 2022.
Managing Director and CEO Rajiv Sabharwal said Tata Capital has been expanding faster than the industry, clocking 17-18 per cent growth versus the broader credit market’s 11 per cent. He credited NBFCs’ nimbleness, innovation, digital adoption, and wider product range for their increasing market share. “NBFCs have grown at a significantly better pace than overall credit growth, supported by innovation and digital capabilities,” he said.
Sabharwal noted that India’s large commercial vehicle financing market alone is worth nearly Rs 10 lakh crore, with Rs 1.5 lakh crore in annual disbursements—an opportunity Tata Capital intends to tap. Retail and SME lending together form nearly 88 per cent of its book, he added, observing that these segments are expanding faster than the overall credit industry.
Since launching lending operations in 2007, Tata Capital has served more than 7 million customers across salaried individuals, entrepreneurs, SMEs, and corporates.
It offers over 25 lending products and also distributes third-party offerings such as insurance and credit cards, besides wealth management and private equity fund management.
The company has invested over Rs 2,000 crore in digital platforms in the past five years, digitising its entire loan journey from origination to underwriting.
More recently, it has begun investing in generative AI to enhance efficiency, reduce operating costs, and improve service quality.
“As we move forward, continued investments in technology, analytics, and AI will help us sustain high growth with low credit costs,” Sabharwal said.
He highlighted that Tata Capital has maintained one of the lowest credit costs in the industry while steadily improving profitability. For FY25, it posted a profit after tax of Rs 3,655 crore, up from Rs 3,327 crore in the previous year. Revenue rose sharply to Rs 28,313 crore in FY25 from Rs 18,175 crore in FY24.
Sabharwal said the company is well positioned to capture growth as India’s economy expands at 6.5-7 per cent, driving credit growth of 11-12 per cent.
“We are present in the segments with the best possible growth rate in the industry,” he said, adding that the IPO will strengthen the balance sheet and build investor
confidence.
