rewrite this title and make it good for SEOTata Capital IPO opens today: All you need to know before investing in Tata Group’s Rs 15,512-crore debut

Tata Capital IPO: Tata Capital Ltd, the flagship financial services arm of the Tata Group, is set to make its stock market debut today, October 13, marking one of the most significant public offerings in India’s financial services sector in recent years.

The Rs 15,512 crore maiden public issue comes just two years after Tata Technologies’ successful listing, positioning Tata Capital as the second Tata Group company to go public in the current decade.

Tata Capital IPO Subscription Date & Price Band

The three-day subscription window for the IPO was scheduled between October 6 and October 8, with a price band fixed at Rs 310 to Rs 326 per share.

At the upper end, the issue values Tata Capital at nearly Rs 1.38 lakh crore, making it one of the largest non-banking financial company (NBFC) listings in the country.

Tata Capital IPO: Anchor Response

The company’s anchor round, held before the IPO, saw overwhelming investor demand. Tata Capital raised Rs 4,642 crore from 68 domestic and global institutional investors, with bids nearly five times higher than the allocation.

Notable participants included the Life Insurance Corporation of India (LIC), ICICI Prudential Mutual Fund, Nippon India Mutual Fund, Motilal Oswal Mutual Fund, Amansa Holdings, Nomura, Morgan Stanley, Government Pension Fund Global, and Goldman Sachs.

A total of 14.24 crore shares were allotted to these anchor investors at Rs 326 per share.

The participation of sovereign funds, insurers, mutual funds, and foreign portfolio investors underscores the broad appeal of Tata Capital’s business model and the confidence in its growth trajectory.

Tata Capital IPO Structure and Utilisation

The IPO comprises a fresh issue of 21 crore equity shares and an offer-for-sale (OFS) of 26.58 crore shares.

Tata Sons, which currently holds 88.6 per cent of Tata Capital, will divest 23 crore shares under the OFS, while the International Finance Corporation (IFC), with a 1.8 per cent holding, will offload 3.58 crore shares.

Proceeds from the fresh issue will be used to strengthen Tata Capital’s Tier-1 capital base, supporting future growth requirements and lending expansion.

Tata Capital IPO: Company Strengths

As of June 2025, Tata Capital is the third-largest diversified NBFC in India, with a gross loan book of about Rs 2.3 trillion. Retail and SME lending account for 87.5 per cent of the portfolio, according to the SBI Securities report.

The company has a wide presence across 27 states and UTs with over 1,500 branches, 30,000 direct selling agents, 400 OEM partnerships, and 60+ digital sourcing partners.

“Its “phygital approach, combining physical presence with digital scale, has enabled Tata Capital to serve more than 7 million customers since starting operations in 2007. Its product range spans over 25 loan categories, catering to individuals, small businesses, SMEs, and corporates,” SBI Securities report noted.

Tata Capital IPO: Should You Invest?

In a note to investors ahead of the IPO, SBI Capital Markets (SBICAPS) Securities highlighted Tata Capital’s strong parentage, diversified product portfolio, and prudent risk culture.

The note stated that the company’s AAA credit ratings, broad liability profile, and omnichannel distribution network give it an edge in sustaining long-term growth.

Sunny Agrawal, Head of Fundamental Equity Research Team at SBICAPS Securities Ltd, said, “Tata Capital’s IPO offers investors an opportunity to participate in the growth story of one of India’s leading NBFCs, backed by the trust of the Tata Group.”

“The company’s diversified product portfolio, strong balance sheet, and omni-channel presence position it well to capture the rising credit demand across retail and SME segments. While near-term profitability is impacted due to the TMFL merger, we expect steady improvement as synergies play out,” he added.

Read More: Could Rs 15,500-crore Tata Capital IPO be a game-changer? Here’s what CEO Rajiv Sabharwal thinks

Tata Capital Financial Result

The company also distributes third-party insurance and credit card products, offers wealth management services, and manages private equity funds.

On the financial front, Tata Capital reported a profit after tax of Rs 3,655 crore in FY25, compared with Rs 3,327 crore in FY24. Revenue jumped to Rs 28,313 crore in FY25 from Rs 18,175 crore in the previous fiscal.

Asset quality remains robust, with Gross Stage 3 loans at 2.1 per cent and Net Stage 3 at 1 per cent, among the lowest in the NBFC sector.