Record-Breaking Start for Tata Capital’s IPO
Tata Capital Ltd. began accepting bids on Monday for its much-anticipated initial public offering (IPO) — a massive ₹155 billion ($1.7 billion) issue that’s poised to become India’s largest listing of 2025.
The IPO will include the sale of up to 475.8 million new and existing shares, offered by Tata Capital, its parent company Tata Sons, and International Finance Corp (IFC). The price band has been fixed at ₹310 – ₹326 per share, with subscriptions open until Wednesday.
If fully subscribed, Tata Capital will be valued at around ₹1.4 trillion ($15.7 billion) — making it worth more than twice HDB Financial Services, which went public earlier this year.
India’s IPO Market on Fire
The listing comes amid an exceptional run for India’s primary markets. The Tata Capital IPO will be followed almost immediately by LG Electronics India’s billion-dollar issue, underscoring strong investor appetite for large-cap offerings.
Experts expect total IPO proceeds in October to exceed $5 billion, setting a new record for India.
“There is now ample capacity to absorb supply,” said Raghuram K, Partner at Uniqus Consultech.
“Mutual funds are awash with inflows from monthly investment plans, giving them confidence to deploy capital aggressively.”
Strong Demand From Anchor Investors
Ahead of the main issue, Tata Capital raised ₹46.4 billion ($523 million) from anchor investors, including:
- Morgan Stanley
- Goldman Sachs Group Inc.
- Nomura Holdings Inc.
- Life Insurance Corp. of India (LIC)
This early response reflects strong institutional confidence in the company’s fundamentals and the Tata Group brand.
Why Investors Are Excited About Tata Capital
Founded in 2007, Tata Capital provides a wide spectrum of financial products and services to retail, corporate, and institutional clients.
As of June 2025, it managed ₹2.33 trillion in assets and served over 73 million customers.
Analysts highlight several reasons why this IPO stands out:
- Diversified portfolio: The company maintains exposure across retail lending, corporate finance, and wealth management.
- Resilient growth: Backed by Tata Group’s reputation, Tata Capital has built a stable, scalable business model.
- Attractive valuation: At the upper price band, the shares trade at 3.4 times book value, still below major peers like Bajaj Finance, Cholamandalam Investment, and HDB Financial Services.
“Tata Capital offers a resilient business model focused on sustained growth,” noted ICICI Direct Research in a client report.
India’s IPO Boom Continues
Even with the stock market showing signs of fatigue after a nine-year rally, India remains one of the world’s most active IPO hubs.
By the end of Q3 2025, total IPO proceeds had already reached $11.2 billion, ranking India fourth globally, according to Bloomberg data.
This surge is driven by:
- Rising corporate ambitions
- A deep pool of domestic capital
- Retail investors’ growing enthusiasm for equity markets
Recent regulatory reforms have also helped—with SEBI easing norms for large private firms to go public and the Reserve Bank of India relaxing rules for IPO-linked financing.
Tata Capital’s IPO marks a milestone for India’s financial sector and could define the next phase of market expansion. With solid institutional backing, diversified growth potential, and the trust of the Tata brand, this is one of the most closely watched listings of the decade.
If October’s momentum holds, India’s IPO market may set a new all-time fundraising record — signaling continued global confidence in the country’s economic growth story.
