Tata Capital IPO: Snapshot, Timeline, Fundamentals, Valuation, SWOT & GMP

Tata Capital - Tata Group’s flagship NBFC - launches 2025’s biggest IPO. Proceeds mix fresh capital for expansion and an OFS by existing shareholders. With a ₹310–₹326 band, the offer gauges demand for quality lenders at premium multiples. Here’s a simple, table-first overview.

IPO Snapshot

Issuer	Tata Capital Limited (Diversified NBFC; Tata Group)
Face value	₹10 Per Equity Share
Price band	₹310–₹326 per share
Lot size (min bid)	46 shares; bids in multiples of 46
Offer size (shares)	Fresh: up to 21.00 crore shares; OFS: up to 26.582 crore shares (Tata Sons up to 23.0 cr; IFC up to 3.582 cr)
Indicative rupee size	~₹15,512 crore at the band (media calculation at announced band)
Implied market cap	~₹1.32–₹1.38 lakh crore at the band
Listing	NSE & BSE; NSE designated
BRLMs (lead managers)	Kotak, Axis, BNP Paribas, Citi, HDFC Bank, HSBC, ICICI Securities, IIFL, J.P. Morgan, SBI Capital

IPO Timeline

Anchor book	Fri, Oct 3, 2025
Issue opens	Mon, Oct 6, 2025
Issue closes	Wed, Oct 8, 2025
Basis of Allotment	Thu, Oct 9, 2025 (on/around)
Refunds / Demat credit	Fri, Oct 10, 2025 (on/around)
Listing (NSE/BSE)	Mon, Oct 13, 2025 (on/around)

What is Tata Capital & What it does

Tata Capital is a systemically important NBFC within the Tata Group. It offers retail, SME and corporate lending - home loans, loans against property, personal and vehicle loans, business and education loans, microfinance, and equipment finance/leasing. It also distributes third-party products such as insurance and wealth solutions. Recent disclosures highlight strong growth, RoE above 20% in recent periods, and low reported GNPA levels (around ~1%).

Tata Capital operates through key subsidiaries such as:

Tata Capital Financial Services
Tata Capital Housing Finance
Tata Cleantech Capital

Business Verticals

Retail Finance (home, consumer & vehicle, microfinance)
SME & Business Loans
Corporate/Infrastructure & Equipment Finance / Leasing
Distribution (insurance and wealth products)

Key Fundamentals (Consolidated)

All figures ₹ crore; FY ends March 31. Compiled from RHP-backed summaries.

Metric	FY23	FY24	FY25
Total Income	13,637.49	18,198.38	28,369.87
PAT (Profit After Tax)	2,945.77	3,326.96	3,655.02
Total Assets	1,35,626.10	1,76,693.98	2,48,465.01
Net Worth	17,959.06	23,540.19	32,587.82
Reserves & Surplus	11,899.32	18,121.83	24,299.88

One-line read: FY25 shows ~56% YoY rise in total income to ₹28,370 crore and PAT of ₹3,655 crore, with Net Worth at ~₹32,588 crore - indicating scale with steady profitability heading into the IPO.

Key Performance Indicators

KPI as of Mon, Mar 31, 2025.

Key Performance Indicators	Values
ROE	12.6%
ROA	1.8%
Debt/Equity	6.60
RoNW	11.2%
Price to Book Value	4.10

Comparison with peers

Company Name	Revenue (₹ Cr)	P/E Ratio	EPS (Basic) (₹)	NAV per share (₹)
Tata Capital	28,312.740	-	9.3	79.5
Bajaj Finance	69,683.510	37.8	26.9	155.6
Shriram Finance	41,834.420	12.1	50.8	300.3
Cholamandalam Investment and Finance	25,845.980	31.5	50.6	281.5
L&T Finance	15,924.240	23.1	10.6	102.5
Sundaram Finance	8485.630	26.9	170.5	1,187.8

SWOT Analysis

Strengths	Weaknesses
Tata Group brand; diversified loan book and channels; strong credit ratings; scaled AUM; improving asset quality and RoE.	Rate-cycle sensitivity typical of NBFCs - funding and credit costs can compress spreads; lower (ROA) compared to its top-tier peers, execution complexity across multiple segments.
Opportunities	Threats
Under-penetrated retail and MSME credit; cross-sell via Tata ecosystem; presence in cleantech project financing, growth fuel from fresh Tier-1 capital post-IPO.	RBI regulatory changes; intense competition from banks/fintechs; macro slowdown; any asset-quality shock would pressure margins.

Use of proceeds (Fresh issue)

Purpose: To augment Tier-1 capital to support future growth and maintain capital adequacy. (This IPO’s fresh issue is not ₹472 crore; that figure belonged to a different IPO.)

GMP watch

Recent grey-market chatter indicates a premium in the range of ₹8–₹10 (about 3-4% on the band). Treat this only as sentiment - GMP is unofficial, volatile, and not predictive of listing outcome.

Final Verdict

Tata Capital brings scale, a diversified loan book, and improving asset quality - backed by Tata Group credibility. The trade-off is a premium valuation for an NBFC, which assumes steady growth, benign credit costs, and disciplined funding in a rate-sensitive cycle. If you track it, focus on RoE sustainability, GNPA/NNPA trend, and spread resilience post capital raise.

FAQs

1. What are the IPO dates and price band?

Anchor: Oct 3, 2025; Bidding: Oct 6–8, 2025; Price band: ₹310–₹326 per share.

2. What is the lot size and minimum investment?

Lot size is 46 shares; minimum outlay is ₹14,260 at ₹310 and ₹14,996 at ₹326.

3. How big is the issue and what’s the split?

Fresh up to 21.00 crore shares; OFS up to 26.582 crore shares (Tata Sons and IFC). Approximate rupee size is ~₹15,512 crore at the band.

4. Where can I read the official documents?

Refer to the RHP on SEBI/stock exchange websites and the official price-band advertisement hosted by the issuer/BRLMs.

5. What’s the stated use of proceeds?

To augment Tier-1 capital for growth and capital adequacy.

Disclaimer: This is not investment advice or a recommendation to buy or sell any security. Always read the RHP/Prospectus and consult a licensed adviser before investing.

Published At: Oct 06, 2025 10:15 am

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