Tata Capital IPO – ₹17,200 Cr Mega Listing, $11B Valuation & What Investors Must Know

IPOName: Tata Capital IPO; ListingDate: 2025-09-30; IPOSize: ₹17,200 Cr; PriceBand: ₹400; OpenDate: 2025-09-22; CloseDate: 2025-09-26; LotSize: 35; Exchange: NSE, BSE; Registrar: KFin Technologies; IssueType: Book Built; FaceValue: ₹10;

Tata Capital, the Tata Group’s financial services arm, is gearing up for India’s largest IPO in the financial sector in 2025. The issue size is expected to be approximately ₹17,200 crore (~$2 billion), valuing the company at around $11 billion. It’s slated to open in the week of September 22 and list before the September 30 RBI deadline for upper-layer NBFCs. :contentReference[oaicite:0]{index=0}

IPO Structure & Timing

• Fresh Issue: Up to 21 crore equity shares
• OFS: Up to 26.58 crore shares (23 Cr by Tata Sons, 3.58 Cr by IFC) :contentReference[oaicite:1]{index=1}
• SEBI has approved the confidential DRHP; RHP likely in early July 2025 :contentReference[oaicite:2]{index=2}

Financial Strength & Growth

For FY25, Tata Capital reported total income of ₹2.83 lakh crore (↑56% YoY); net profit was ₹36,647 crore (↑16%) with RoE at 12.6%, and a healthy CAR of 16.9%. Its loan book grew to ₹2.26 lakh crore, driven by retail & SME customers (88.5%). :contentReference[oaicite:3]{index=3}

Driven by the merger with Tata Motors Finance, Tata Capital’s scale and distribution strength have significantly increased. As of Q1 FY26, revenue rose ~50% YoY to ₹7,478 crore, and consolidated PAT grew 31% to ₹1,000 crore. Unlisted shares are trading around ₹1,050, valuing the company at nearly ₹3.8 lakh crore. :contentReference[oaicite:4]{index=4}

What’s the Market Talking About?

• Roadshows are already underway domestically and abroad, signaling investor outreach momentum. :contentReference[oaicite:5]{index=5}
• Market chatter suggests the IPO may be priced attractive—possibly at a ~50% discount to unlisted share price of ₹1,050. CEO feedback estimates ₹375–450/share. :contentReference[oaicite:6]{index=6}
• Pricing remains a key concern—possibly priced below the rights issue—to drive retail and institutional demand. :contentReference[oaicite:7]{index=7}

Why This IPO Matters

• It’s one of India's largest ever IPOs and a defining event for the NBFC sector.
• Tata Sons and IFC actions signal confidence, while RBI listing norms are a key trigger. :contentReference[oaicite:8]{index=8}
• Strong parentage, scale, and expanding loan base make it a standout opportunity for investors.

Risks to Watch

• Unlisted shares are down 20–25% from highs—investor sentiment may hinge on pricing strategy. :contentReference[oaicite:9]{index=9}
• Marquee IPOs often result in oversubscription—flipping gains may be skewed toward institutional investors.
• Any IPO pricing too rich may disappoint retail appetite despite strong fundamentals.

Final Take

The Tata Capital IPO is not just another public offer—it could reshape India’s IPO narrative in 2025. Valuation, pricing, and execution will be critical. If priced attractively, this could be a rare large-cap NBFC entry for retail investors—but timing and caution are key.

Stay tuned to GMPRadar.com for live updates on Tata Capital’s IPO—tracking GMP, subscription, and listing-day performance.