Tata Capital Fixes IPO Price Band at ₹310-326; Aims to Widen Retail Participation: MD

Tata Capital has fixed the price band for its upcoming initial public offering (IPO) at ₹310-326 a share, about 5% below its recent rights issue price, in a bid to widen participation and attract more retail investors, its Managing Director and CEO Rajiv Sabharwal said.

The company had raised ₹1,750 crore through a rights issue in July at ₹343 a share.

By setting the IPO range lower, the board sought to strike a balance between institutional demand and retail affordability, he said.

"While institutional investors were willing to come in at a higher value, our board decided on a price band that encourages broader participation, particularly from retail investors," Sabharwal told PTI.

"The intent is to provide a fair entry point that supports strong demand, ensures healthy liquidity, and builds lasting credibility in the public markets. This is not just a gesture of goodwill - it reflects the Tata Group's philosophy of fairness, inclusivity, and value creation," he added.

The third largest NBFC, Tata Capital's loan book exceeds ₹2.3 lakh crore with over 88% of loans serving retail and SME customers.

The company's housing business, which makes up roughly one-third of the overall book, has delivered one of the best growth rates among large housing finance companies, serving the needs of retail customers effectively.

"We have made substantial investments across the lending value chain, empowering us to deliver best-in-class service to our customers consistently. Further, our management team brings extensive experience, driving strong execution across businesses. Finally, the Tata brand - a beacon of trust in India - remains central to our identity," he said.

The company aims to garner up to ₹15,512 crore, making it the largest issue of the year. At the top end of the band, the non-banking financial company commands a valuation of about ₹1.38 lakh crore.

The maiden public offering will open for subscription on October 6 and close on October 8.

The IPO, comprising a total of 47.58 crore shares, includes a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares.

Under the OFS component, Tata Sons will offload 23 crore shares, while the International Finance Corporation (IFC) will divest 3.58 crore shares.

Currently, Tata Sons holds an 88.6% stake in Tata Capital, while IFC owns a 1.8% holding.

Proceeds from the IPO will be used to strengthen the company's Tier-1 capital base, supporting future capital requirements, including onward lending.

Tata Capital, the financial services arm of Tata Group, had earlier filed draft papers in April through the confidential pre-filing route and secured approval from market regulator Sebi in July.

This will mark the Tata Group's second public listing in recent years, following the debut of Tata Technologies in November 2023.

The IPO is being undertaken in line with the Reserve Bank of India's (RBI) listing mandate for upper-layer NBFCs, which requires them to be listed within three years of classification. Tata Capital was designated as an upper-layer NBFC in September 2022.