Tata Capital, the Group’s financial services company, has opened its initial public offering as of today and is one of the most highly anticipated IPOs this year, 2025. With a total issue size of ₹15,512 crore, the issue is likely to redefine the NBFC space and see massive interest among retail and institutional investors. The IPO comprises a fresh issue and an offer for sale, which is Tata Capital’s strategic move to boost its capital base and expand its book of loans.

IPO Time Table and Price Band

The IPO is open for subscription from October 6, 2025, and will continue until October 8, 2025. The price band has been set at ₹310 to ₹326 a share with a lot size of 46 shares. A minimum investment of ₹14,996 will be needed for retail investors to apply at the higher price band. The stock is to be listed on both the NSE and BSE, with the allotment date being October 9 and listing by October 13.

Offer Structure and Share Distribution

The IPO consists of a fresh issue size of ₹6,846 crore and offer for sale size of ₹8,666 crore. The promoter Tata Sons is selling 23 crore shares, and International Finance Corporation is selling 3.58 crore shares. This dual structure provides a means of raising new capital by Tata Capital and also gives an exit to existing stakeholders.

Strong Institutional Backing Through Anchor Investment

Prior to opening the public subscription window, Tata Capital had mobilized ₹4,642 crore of anchor book money from anchor investors, a testament to strong institutional belief in the company’s fundamentals. In the anchor book, marquee investors like LIC of India, HDFC Mutual Fund, ICICI Prudential, Goldman Sachs, Morgan Stanley, and Norway’s Government Pension Fund Global played a part. This level of participation by global and domestic institutions not only validates the growth story of Tata Capital but also generates a positive mood among retail investors considering entry.

Financials and Valuation Parameters

Tata Capital has delivered steady financial resilience over recent years. The company reported FY25 profit after tax of ₹3,655 crore and revenue of ₹28,313 crore. As of June 2025, its asset size stood at ₹2.52 lakh crore with a gross loan book of ₹2.33 lakh crore and 2.1 percent gross NPA ratio indicating good asset quality. At the higher price band, the IPO values Tata Capital at 4.1 times its book value of FY25 and 33 times its earnings of FY25, which is somewhat lower than the industry average—making it comparatively an attractive deal from a valuation perspective.

Is the Tata Capital IPO worth Your Money?

Brokerages like Anand Rathi and Mehta Equities have assigned a “Subscribe” rating for the IPO, attributing various reasons behind Tata Capital being an attractive investment. Diversified lending portfolio of the company, commanding brand equity riding on the Tata group, and steady financial performance are positives. Analysts also mention that prices allow for listing gains, particularly in the light of the healthy anchor book and positive sentiment in the market towards financial services.

Additionally, Tata Capital’s consistent maintenance of margins and low credit costs despite the fluctuating macro environment makes it a robust play in the NBFC sector. As a strategic entry for long-term investors wishing to take exposure in a well-run financial institution with growth prospects, this IPO is an attractive opportunity.

Final Thoughts

Tata Capital’s IPO is not merely a fund-raising exercise—it’s a reflection of the company’s readiness to grow and compete more aggressively in India’s dynamic financial space. With massive institutional backing, strong finances, and an evenly spaced offer, the IPO presents a unique opportunity for investors to come on board with one of India’s best-known names in finance.