Tata Capital is preparing to launch its much-awaited IPO before September 2025. Initial indications suggest that its price band may remain significantly below the current unlisted price of ₹775. The company will raise over ₹17,000 crore, including both new shares and an OFS (Offer for Sale). This step is being taken to comply with the RBI's Upper Layer NBFC regulations.
Tata Capital IPO: Tata Group's NBFC company, Tata Capital Limited, filed its updated DRHP (Draft Red Herring Prospectus) with SEBI on August 4, 2025, and is preparing to launch its IPO before September. The company has Assets Under Management (AUM) of ₹2.3 lakh crore, and the listing is being undertaken to strengthen Tier-I capital and fulfill the RBI's mandatory listing conditions. The IPO will include approximately 21 crore new shares and 26.58 crore OFS shares. According to initial reports, the price band may be set significantly lower than the current unlisted valuation, potentially making it an attractive opportunity for small investors.
Debate on Tata Capital Share Price
Currently, Tata Capital's unlisted shares are trading at around ₹775. However, initial estimates suggest that the actual IPO price could be considerably lower. Experts say that the market situation and the company's recent deals will be taken into account when determining the final price band.
This situation is causing concern among investors because Tata Capital's last rights issue was priced at only ₹343 per share. This price is less than half of the unlisted valuation. This rights issue came on July 18, 2025, and during the same period, the company also filed its updated Draft Red Herring Prospectus (DRHP).
Examples of HDB Financial and NSDL
Tata Capital's case is not unique. Similar patterns have been observed in other major IPOs recently. For example, HDB Financial Services' unlisted price reached ₹1,550. However, when its IPO came, the price band was set at only ₹700 to ₹740.
Similarly, the grey market price of National Securities Depository Limited (NSDL) was ₹1,275. But when it came to listing, the IPO band was kept at only ₹700 to ₹800. These examples clearly indicate that Tata Capital's price band is also likely to remain significantly below the current unlisted valuation.
IPO Size
Tata Capital filed an updated DRHP with SEBI on August 4. It is estimated that the company's IPO could be worth more than ₹17,000 crore.
The company will issue approximately 21 crore new shares in this issue. In addition, 26.58 crore shares will be sold through an Offer For Sale (OFS). In this process, Tata Sons plans to sell approximately 23 crore shares and International Finance Corporation (IFC) 3.58 crore shares.
IPO Likely Before September
The Reserve Bank of India granted Tata Capital the status of Upper Layer NBFC in September 2022. All companies in this category are required to be listed on the market within three years. In this regard, Tata Capital must launch its IPO before September 2025.
For this reason, there is discussion in the market that the company's much-awaited IPO will come before this financial year, i.e., before September 2025.
Brokerage House Perspective
A recent report by brokerage house Macquarie stated that even if Tata Capital's IPO is listed at a 60 percent discount to the current unlisted price, it will still trade at a higher valuation compared to many of its NBFC peers.
The company's Assets Under Management (AUM) is currently at the level of ₹2.3 lakh crore. In this respect, it has become the third largest NBFC in India. However, Tata Capital recently merged with Tata Motors Finance Limited. This deal is putting pressure on the company's return ratios.
