About Tata Capital Limited - Mainboard IPO
Tata Capital Limited is the flagship financial services company of the Tata Group and India’s third-largest diversified NBFC (Non-Banking Financial Company). Established in 2007, the company provides over 25 lending products including personal loans, home loans, car loans, business loans, and corporate financing. As of June 2025, Tata Capital serves 7.3 million customers across India through 723+ branches.
The company operates as an “Upper Layer NBFC” as classified by the Reserve Bank of India (RBI) and is required to list on stock exchanges by September 2025. Tata Capital also offers wealth management, investment banking services, and distributes third-party products like insurance and credit cards.
READ FULL DRHP HERE: |SEBI DRHP TATA CAPITAL|
IPO Details
Key Information
| Details | Information |
|---|---|
| IPO Price Band | ₹310 - ₹326 per share |
| Minimum Lot Size | 46 shares (about ₹14,996 at highest price) |
| Issue Size | ₹15,511.87 crore (₹6,846 crore fresh + ₹8,665.87 crore OFS) |
| Face Value | ₹10 per share |
| Stock Exchanges | BSE and NSE |
| Registrar | Link Intime India Private Limited. CLICK HERE |
| Book-running Managers | Kotak Mahindra Capital, Axis Capital, BNP Paribas, Citigroup, HDFC Bank, HSBC Securities, ICICI Securities, IIFL Capital, JP Morgan, SBI Capital |
IPO Timeline (Important Dates)
| Event | Date |
|---|---|
| Anchor Investor Bidding | October 3, 2025 |
| IPO Opens | October 6, 2025 |
| IPO Closes | October 8, 2025 |
| Allotment Date | October 9, 2025 |
| Refunds/Unsuccessful Bids | October 10, 2025 |
| Shares in Demat Account | October 10, 2025 |
| Listing Date | October 13, 2025 |
What Is the Money Used For?
The funds raised will be used for:
- ₹6,846 crore (fresh issue) - Strengthening Tier-1 capital base to meet future capital requirements and onward lending
- ₹8,665.87 crore (OFS) - Tata Sons selling 23 crore shares, IFC selling 3.58 crore shares (existing shareholders getting exit)
Key Financials (as per NSDL)
| Financial Metric | FY23 (₹ Cr) | FY24 (₹ Cr) | FY25 (₹ Cr) |
|---|---|---|---|
| Revenue from Operations | 15,172.79 | 18,174.61 | 28,312.74 |
| Profit After Tax (PAT) | 3,029.20 | 3,150.21 | 3,664.66 |
| Total Assets | 1,94,809 | 2,37,345 | 2,85,250 |
| Net Worth | 23,323 | 27,526 | 32,588 |
| Gross Loan Book | 1,78,411 | 2,17,090 | 2,59,068 |
| ROA (Return on Assets) | 1.81% | 1.50% | 1.48% |
| ROE (Return on Equity) | 14.24% | 12.61% | 12.40% |
| Gross NPA | 2.90% | 2.40% | 2.10% |
| Net NPA | 1.40% | 1.20% | 1.00% |
| Capital Adequacy Ratio | 22.30% | 21.00% | 19.90% |
Explanation of Financial Terms:
- Revenue: Total income from lending and other financial services
- PAT: Final profit after all expenses and taxes
- Gross Loan Book: Total amount lent to customers
- ROA/ROE: How efficiently the company uses its assets/equity to generate profits
- NPA: Non-Performing Assets - loans that customers haven’t paid back
Analysis:
-
Revenue from operations jumped from ₹15,173 crore (FY23) to ₹28,313 crore (FY25) - an 87% increase over two years
-
Revenue growth rate increased from 20% in FY24 to 56% in FY25, showing strong momentum
-
PAT grew steadily from ₹3,029 crore (FY23) to ₹3,665 crore (FY25) - 21% growth over two years.
-
Net Interest Margin maintained around 4-5% despite competitive pressure.
-
Return on Assets (ROA) of 1.48% and Return on Equity (ROE) of 12.40% indicate efficient operations.
Points of Caution:
- High valuation: ₹1.38 lakh crore market cap at upper price band
- Interest rate sensitivity: NBFC profits affected by rate cycles
- Competition: Intense competition from banks and other NBFCs
- Regulatory risks: RBI regulations can impact NBFC operations
- Economic cycles: Loan growth and asset quality affected by economic conditions
- Large OFS component: ₹8,666 crore going to existing shareholders, not the company
Why Some Investors Like This Mainboard IPO
- Tata premium: Strong brand value and corporate governance standards
- Market opportunity: India’s growing credit demand and financial inclusion
- Proven track record: 18 years of operations with consistent performance
- Strong anchor support: Marquee investors showing confidence
- Attractive pricing: 56% discount to unlisted market price
- Diversified business: Multiple revenue streams reducing concentration risk
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.