Another big IPO is coming to the domestic stock market, and this time it’s from the Tata Group. After Tata Technologies’ IPO in 2023, Tata Capital aims to raise 15,512 crore rupees from the market through its public issue. This IPO will start on October 6 and close on the 8th. The price band for Tata Capital shares has been set between 310 to 326 rupees. These shares are expected to be listed on the stock market on October 13. As part of the IPO, the company will issue a total of 47.58 crore shares, out of which 26.58 crore shares will be under the Offer for Sale (OFS) and 21 crore shares will be issued as Fresh Issue.
In this IPO, 35% of the shares have been allocated for retail investors. 50% of the shares will be allocated to eligible institutional investors, and the remaining 15% will be for non-institutional investors. The company reported a net profit of 3,655 crore rupees for the financial year 2024-2025, with a revenue of 28,313 crore rupees during the same period. Tata Capital, which began operations in 2007, has provided loans to 7 million people across various sectors by March 2025. The funds raised through the IPO will primarily be used for Tier 1 capital, future funding requirements, and strengthening the company’s balance sheet.
Meanwhile, the unlisted Tata Capital shares once reached a price of 1,125 rupees at one point. Investors who bought at these high prices are now facing losses. Taking into account the Tata Group's image and the company's fundamentals, many investors had purchased unlisted shares at high prices. However, with the IPO price band set at a maximum of 326 rupees, they are now in shock. The last traded price for the company’s shares in the unlisted market was 735 rupees. Even with that, compared to the IPO price, these investors have made significant losses. However, market experts say that for long-term investors, the Tata Capital IPO presents a good opportunity.