The much-anticipated initial public offering (IPO) of Tata Group’s non-banking financial company (NBFC), Tata Capital, goes live today, with shares priced at a band of ₹310 – ₹326.
The Tata Group company aims to raise ₹15,511.87 crore through the IPO, which includes a fresh issue of ₹6,846 crore and an offer for sale (OFS) of ₹8,665.87 crore. It is expected to be the biggest IPO in India so far this year.
Investors can bid in multiples of one lot, comprising 46 equity shares. The IPO allotment is expected on October 9, with listing likely on October 13.
MUFG Intime India will serve as the registrar for the issue. The book-running lead managers include Kotak Mahindra Capital, BNP Paribas, Citigroup Global Markets India, HDFC Bank, HSBC Securities & Capital Markets (India), ICICI Securities, IIFL Capital Services, JP Morgan India, SBI Capital Markets, and Axis Capital.
On October 3, Tata Capital raised around ₹4,641.8 crore from 135 anchor investors, with Life Insurance Corporation (LIC) as its largest anchor investor.
Grey Market Signals
According to the latest reports, the IPO shares are currently trading at a premium of ₹7 in the grey market, translating to around 2% over the upper price band.
Brokerage Views
SMC Global Securities: As the third-largest diversified NBFC in India, it offers a comprehensive suite of over 25 loan products catering to individuals, MSMEs, and corporates, supported by a vast network of 1,500+ branches, 30,000 direct selling agents, and strong digital platforms.
The company benefits from strong brand equity, risk management, advanced digital and AI-driven underwriting systems, and a “AAA” credit rating from major agencies.
However, Tata Capital faces key risks, including sensitivity to interest rate volatility, potential asset-liability mismatches affecting liquidity, and dependence on maintaining top-tier credit ratings for cost-effective borrowing.
Deven Choksey: Set at 4.1 times the price-to-book ratio compared to peers’ 3.7x, the IPO appears fairly valued, prompting a “Neutral” rating.
Sectoral risks include intense competition from banks, HFCs, fintechs, and private lenders, with larger rivals benefiting from lower funding costs and stronger brand recognition, which pressures margins and market share.
Asset quality risks persist due to exposure to unsecured loans and borrowers with limited credit history.
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