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Tata Capital IPO: Key Details, Price Band Expectations & Timeline
Tata Capital Limited is preparing for its much-awaited IPO. Early indications suggest that the price band may be set much lower than its current unlisted valuation. At present, the company’s unlisted shares are trading around ₹775, but experts estimate that the actual IPO price could be significantly lower.
Lessons from HDB Financial & NSDL
This trend has been seen in other major IPOs as well. For example:
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HDB Financial Services: Unlisted price was ₹1,550, but IPO price band was only ₹700–740.
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NSDL: Grey market price was ₹1,275, but the IPO band was fixed at just ₹700–800.
Tata Capital’s case is even more important because its last rights issue was priced at only ₹343 per share—less than half its unlisted price. This issue came on July 18, 2025, around the same time the company filed its updated Draft Red Herring Prospectus (DRHP).
Tata Capital IPO Structure
Tata Capital filed an updated DRHP with SEBI on August 4. The IPO could be worth over ₹17,000 crore.
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The company, a subsidiary of Tata Sons, will issue around 21 crore fresh shares.
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Additionally, 26.58 crore shares will be sold through an Offer for Sale (OFS).
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Tata Sons plans to sell 23 crore shares.
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International Finance Corporation (IFC) will offload 3.58 crore shares.
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IPO Timeline
The highly anticipated IPO is expected to hit the market before September 2025. This deadline is crucial because in September 2022, the Reserve Bank of India (RBI) classified Tata Capital as an Upper Layer NBFC (Non-Banking Financial Company).
As per RBI regulations, all NBFCs in this category must be listed within three years—making it mandatory for Tata Capital to launch its IPO before September 2025.
Brokerage House View
According to a recent Macquarie report, even if Tata Capital lists at a 60% discount to its current unlisted price, it will still trade at a premium compared to many of its NBFC peers.
Tata Capital, India’s third-largest NBFC, has an Asset Under Management (AUM) of ₹2.3 lakh crore. The IPO is mainly aimed at strengthening Tier-I capital and complying with RBI’s upper-layer norms. Recently, the company also merged with Tata Motors Finance Limited (TMFL), which has impacted its return ratios.
Disclaimer
The information provided here is for educational purposes only. Investing in the market is subject to risks. Always consult with a financial advisor before making any investment decisions. Tradewithmohib never provides direct investment advice.
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