5 Key Things to Know
The much-awaited Tata Capital IPO 2025 is set to launch on October 6, marking India’s biggest initial public offering of the year. With an estimated issue size of ₹17,200 crore, the financial arm of the Tata Group has already created a buzz in the market. Investors are closely tracking grey market signals and the upcoming listing. Here are five key things to know before the IPO hits Dalal Street.
1. Grey Market Premium (GMP) Signals Early Buzz
The Tata Capital IPO has started trading in the grey market with a premium of around ₹29. Since the official price band is yet to be declared, the exact premium over the issue price remains uncertain. However, the early GMP indicates strong investor sentiment.
2. Issue Structure: Fresh Issue + OFS
The IPO will comprise a fresh issue of 21 crore equity shares along with an offer for sale (OFS) of 26.58 crore shares.
- Tata Sons is set to divest 23 crore shares.
- International Finance Corporation (IFC) will sell 3.58 crore shares.
This balanced mix is expected to provide liquidity while raising fresh capital for growth.
3. Record-Breaking Scale
With an issue size of nearly ₹17,200 crore, the Tata Capital IPO will be the largest financial sector IPO in India’s history. The company is targeting a valuation of about $18 billion, placing it among the most valuable NBFCs in the country.
4. Utilization of Proceeds
The funds raised will be used to strengthen Tata Capital’s Tier-1 capital base, enabling the company to expand its lending operations and meet future capital requirements. This will also improve the overall balance sheet and boost lending capacity.
5. RBI Mandate and Growth Track
The IPO comes in line with the Reserve Bank of India’s (RBI) mandate requiring all upper-layer NBFCs to list within three years. In FY25, Tata Capital reported a profit after tax (PAT) of ₹3,655 crore, catering to over 70 lakh customers across 25 different lending products.
With strong fundamentals, a massive scale, and investor interest building up in the grey market, the Tata Capital IPO 2025 is expected to be one of the most closely watched listings of the year.