Tata Capital IPO Priced at ₹310-326 Per Share, Well Below Unlisted Market Levels The company's shares, which once traded at INR 1,075 in the grey market in early June, have slipped around 32 per cent in recent weeks amid heightened market volatility, sector-wide weakness, and the July 2025 rights issue.
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Tata Capital Ltd has set a price band of INR 310–INR 326 per share for its upcoming initial public offering (IPO), sharply below its recent rights issue price of INR 343 and nearly 55 per cent lower than its prevailing unlisted market price of about INR 735.
The company's shares, which once traded at INR 1,075 in the grey market in early June, have slipped around 32 per cent in recent weeks amid heightened market volatility, sector-wide weakness, and the July 2025 rights issue. At their peak in April 2025, Tata Capital's unlisted shares touched INR 1,125, implying a nearly 70 per cent erosion against the IPO band.
Retail investors who entered the unlisted market at higher levels now face steep notional losses, a pattern reminiscent of HDB Financial Services. Ahead of its June 2025 IPO, HDB's unlisted stock fell from INR 1,200 to INR 740, with the IPO eventually listing at INR 777, just a 5 per cent premium. Similarly, the National Securities Depository Ltd (NSDL) IPO saw its grey market premium collapse into a 35 per cent listing-day plunge. Between 2023 and 2025, almost 30 per cent of Indian IPOs listed below their issue price, underscoring risks in pre-IPO grey market buying.
Analysts note that Tata Capital's unlisted shares commanded lofty valuations of 8.5–11 times price-to-book, far ahead of sector peers such as Bajaj Finance (5.9x) and Shriram Finance (4x).
At the upper end of the band, Tata Capital's IPO will raise about INR 15,511 crore in aggregate, comprising a fresh issue of roughly INR 6,846 crore and an offer for sale worth INR 8,665.87 crore. The anchor investor book is pegged at about INR 4,642 crore. Post-issue, the company's market capitalization is estimated at around INR 1.38 lakh crore, translating to a post-money valuation in the range of INR 1.4–1.6 lakh crore.
The proceeds from the fresh issue will be deployed primarily to augment Tier-I capital, supporting onward lending, future capital requirements, and balance sheet strengthening. Proceeds from the offer for sale will go to existing shareholders and will not accrue to the company.
Tata Capital, classified by the Reserve Bank of India as an "upper-layer NBFC," is mandated to be publicly listed within a given timeframe. The IPO will help the company meet this regulatory requirement.
The financial services arm of the Tata Group reported a net profit of INR 3,655.02 crore in FY25 on revenues of INR 28,369.87 crore. It operates across consumer lending, commercial financing, and wealth management, with a network of 1,496 branches across India.
Allocation of shares will follow standard norms: around 50 per cent for Qualified Institutional Buyers (QIBs), 35 per cent for retail investors, and 15 per cent for non-institutional investors (HNIs/NIIs). The anchor investor portion forms part of the QIB segment and will be allotted ahead of the IPO opening.
