Tata Capital IPO to open between October 06 and October 08.

Tata Capital IPO GMP: Tata Capital, the non-banking financial arm of the Tata Group, is set to launch its initial public offering (IPO) on Monday, October 06, 2025. The issue size has been pegged at around $2 billion (Rs 17,200 crore), with the company eyeing a valuation of nearly $18 billion. The public issue will be closed for subscription on Wednesday, October 8, 2025.

The price band for the Tata Capital IPO hasn’t been finalized yet, but unlisted shares have begun trading in the gray market.

The proposed issue comprises a total of 47.58 crore shares, including a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares.

Tata Sons, which currently holds an 88.6% stake in Tata Capital, will offload about 23 crore shares.

International Finance Corporation (IFC), which owns 1.8%, will sell 3.58 crore shares.

Proceeds from the fresh issue will be used to bolster Tata Capital’s Tier-1 capital base, helping the NBFC meet future capital requirements, including lending operations.

In August, Tata Capital launched a series of institutional roadshows to engage both global and domestic investors. The move follows the shadow bank’s filing of an updated Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on August 4.

Tata Capital IPO GMP

According to investorgain.com, the gray market premium for unlisted shares of Tata Capital is currently Rs 20.5. The gray market is an unauthorized market where a company’s shares trade before their listing.

The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

This IPO comes as part of the Reserve Bank of India’s mandate, which requires all upper-layer NBFCs to be listed within three years of classification. Tata Capital was identified as an upper-layer NBFC in September 2022.

The move mirrors similar listings in the sector. HDB Financial Services went public in June 2025 with a Rs 12,500 crore issue, while Bajaj Housing Finance made a blockbuster debut in September 2024, doubling investors’ money on listing day with a 135% premium.

Tata Capital Business and Financials

Founded in 2007, Tata Capital today serves over 70 lakh customers with a wide portfolio of more than 25 lending products, catering to individuals, SMEs, entrepreneurs and corporates. Apart from lending, it also distributes third-party products like insurance and credit cards, provides wealth management services, and acts as a sponsor and investment manager for private equity funds.

For FY25, Tata Capital reported a profit after tax (PAT) of Rs 3,655 crore, compared to Rs 3,327 crore in the previous year. Its revenue jumped to Rs 28,313 crore in FY25, up from Rs 18,175 crore in FY24.

The IPO is being managed by a strong line-up of book-running lead managers, including Axis Capital, Kotak Mahindra Capital, BNP Paribas, HDFC Bank, HSBC Securities, Citigroup Global Markets, ICICI Securities, IIFL Capital, SBI Capital Markets and J P Morgan India.