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Tata Capital has fixed the price band for its upcoming initial public offering (IPO) at INR 310-326 per share, nearly 5% lower than its recent rights issue price of INR 343. The move aims to attract wider retail participation while balancing institutional interest. The IPO, expected to raise up to INR 15,512 crore, will be the largest issue of the year. Proceeds will strengthen the company's Tier-1 capital base and fund future lending growth. This marks the Tata Group's second listing in recent years after Tata Technologies.
Tata Capital has announced the price range for its forthcoming IPO at INR 310-326 per share, setting it about 5% below the recent rights issue price of INR 343. Managing Director and CEO Rajiv Sabharwal said the decision was made to create greater retail participation and maintain accessibility for a broader investor base. Advertisement
The board's choice to set the range slightly lower was aimed at balancing institutional appetite with retail affordability. Sabharwal mentioned that while institutional investors were prepared to invest at a higher valuation, the board preferred to ensure broader inclusivity and healthy post-listing liquidity. He noted that the approach aligned with Tata Group's focus on fairness, inclusivity, and long-term value creation.
Tata Capital, the third-largest non-banking financial company (NBFC) in India, currently has a loan book exceeding INR 2.3 lakh crore. Around 88% of this portfolio serves retail and small and medium enterprise (SME) customers. The housing finance segment, which makes up about one-third of its total book, has registered one of the fastest growth rates among large housing finance institutions in the country.
According to Sabharwal, the company has invested significantly across its lending and service delivery chain, enabling consistent and efficient customer service. He also highlighted the management's extensive experience and emphasized that the Tata brand continues to anchor the firm's trust and credibility in the financial market.
The company aims to raise up to INR 15,512 crore through this IPO, making it the year's largest issue. At the upper end of the price range, Tata Capital would reach an estimated valuation of about INR 1.38 lakh crore. The public offering will comprise 47.58 crore shares, including a fresh issue of 21 crore shares and an offer for sale (OFS) of 26.58 crore shares. Under the OFS, Tata Sons plans to sell 23 crore shares, while the International Finance Corporation (IFC) will divest 3.58 crore shares.
At present, Tata Sons owns about 88.6% of Tata Capital, and IFC holds a 1.8% stake. Funds from the IPO will be used to strengthen the company's Tier-1 capital base and support future growth, particularly onward lending.
Tata Capital, the financial services arm of Tata Group, had filed its draft papers earlier this year through the confidential pre-filing route and received market regulator SEBI's approval during mid-year. This will be the Tata Group's second listing in recent years following the public debut of Tata Technologies in 2023.
The IPO also fulfills the Reserve Bank of India's (RBI) directive for upper-layer NBFCs, which requires such companies to list within three years of classification. Tata Capital received this classification in late 2022.
Source PTI
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