At Rs 15.5k crore, Tata Cap IPO to be biggest NBFC offer

MUMBAI: Tata Capital’s Rs 15,511-crore IPO — Tata Group’s biggest-ever and the largest by any NBFC — will be open between Oct 6-8, with anchor bids on Oct 3. Priced at Rs 310–326 a share, the offer values the firm at Rs 1.32–1.38 lakh crore. Investors must bid for at least 46 shares.

At the floor, pricing matches Tata Sons’ rights issue earlier this year — well below the grey-market frenzy that once saw trades over Rs 1,000 before Trump’s tariff tantrums roiled equities.

The 47.6-crore-share issue comprises 21 crore fresh shares and a 26.6 crore offer for sale (OFS), leading to 11% dilution. Tata Sons will sell 23 crore shares, IFC 3.6 crore. Proceeds from the fresh issue will bolster Tata Capital’s tier-1 capital; OFS money goes to selling shareholders.

“For 18 years, we funded the business with our own capital and were happy with the returns. The IPO is driven by regulatory timelines, though we were glad to support its growth,” said Saurabh Agarwal, group CFO Tata Sons and chairman Tata Capital. On a bank licence, he said: “That question comes up only as and when the corporate houses are allowed to own a bank.”

“If India grows at 6.5–7%, credit will expand 11–12%. Retail and SME credit has been growing faster, at 17–18%. We are in the segment witnessing the strongest growth in the industry,” said Rajiv Sabharwal, MD & CEO, Tata Capital.

Sabharwal sees Tata Capital riding the twin tailwinds of rapid GDP growth and low credit penetration, with NBFCs expanding faster than the broader market. The Tata brand’s reputation, along with the AAA domestic and sovereign-equivalent global ratings, gives the company a funding edge, enabling it to lend competitively. Its loan book is broad and granular — 88% in retail and SME, 99% of exposures under Rs 1 crore, and less than 12% unsecured.


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