MUMBAI: Tata Capital has launched the largest issue from the non-banking segment ever, with a Rs 15,512-crore primary share sale at a price band of Rs 310-326/share—nearly half of the prevailing price in the unlisted markets. The issue, also the largest listing of 2025 so far, opens on October 6 and was delayed a week as the RBI mandate to go public ends on Tuesday.
According to platforms tracking grey market activity, the company’s shares are quoting at a premium. Investorgain reported a grey market premium (GMP) of Rs 24, implying a potential listing gain of about 7.5%.
At the upper end of the price band, the non-banking financial company, which is the third largest in terms of asset under management, is valued at around Rs 1.38 trillion.
Proceeds from the issue will be used to strengthen Tata Capital’s tier-1 capital base and meet future funding requirements, including onward lending, the management led by chairman Saurabh Agarwal, who is also the chief financial officer of parent Tata Sons, told reporters here Monday.
On why the company chose such a low price band when the unlisted shares are trading at more than double the upper price band announced today, Agarwal said the Tata group with its decades of association with millions of investors wanted to leave something really big on their table and also wanted to maximize their investor base for the largest issue from Bombay House.
The Tata group firm had filed draft papers in April through the confidential pre-filing route and received approval from capital markets regulator Sebi in July.
The offering will be the largest public issue in the financial sector and marks the Tata group’s second listing in three years, following Tata Technologies’ debut in November 2023 which was a runaway success, with the Rs 3,042-crore issue getting oversubscribed by 69.4 times with bids worth Rs 1.57 trillion from 73.58 lakh applications, breaking the record set by LIC’s issue in May 2022.
The IPO is being undertaken in line with the Reserve Bank listing mandate for upper-layer NBFCs, which requires them to be listed within three years of classification. Tata Capital was designated as an upper-layer NBFC in September 2022.
Tata Capital expects to complete the listing process on October 13.
The issue consists of an offer of up to 4,75,824,280 shares, comprising a fresh issue of up to 2,10,000,000 shares and an offer for sale of up to 2,65,824,280 shares by Tata Sons and the International Financial Corporation which owns 1.8% in the company.
From the selling shareholders side, Tata Sons is selling up to 230 million shares and IFC up to 35 million shares.
The International Finance Corporation (IFC), which owns around 1.8% in Tata Capital (as on August 4, 2025), stands to get multi-bagger returns of 12-13x on its investment made in Tata Cleantech Capital---now a subsidiary of Tata Capital focused on green and sustainable financing.
Tata Capital is the third largest diversified NBFC, with a comprehensive lending product suite. It also has the highest credit rating with a diverse liability profile resulting in one of the lowest cost of funds among peers.
Tata Capital had completed its overseas road-shows by September 2 post which it was planning the issue in the third week of September, well within the regulatory mandate.
Tata Sons, which owns almost 88.6% (down from 92.8% before the recent rights issue), will offload as many as 23 crore shares. Tata Investment Corporation, which in turn is owned 68.51% by Tata Sons, has 2.5% as of December 2024, making it the second largest shareholder. The other shareholders include Tata Chemicals (0.09%), Tata Consumer Products (0.02%), Tata Motors (0.12%) and Tata Power (0.06%).