Tata Capital Lowers Valuation Ahead of IPO: Check Price Band, Listing Date, GMP

Tata Sons' non-banking financial services (NBFC) arm, Tata Capital, on Monday released details of its initial public offering (IPO), including the price band and listing timeline. The much-anticipated IPO will open on October 6, with the company's shares expected to be listed on exchanges on October 13.

Just a few hours before the details were made public, Moneycontrol reported that the Mumbai-based financial services firm had reduced its post-money equity valuation by 5%.

Citing industry sources, it is claimed that the decision was taken over the weekend to leave more room for investors. Earlier, the company was targeting a valuation of ₹1,46,000 crore, but it has now been cut to ₹1,39,000 crore.

In a public advertisement today, Tata Capital set its IPO price band at ₹310–₹326 per share, making the issue size ₹15,540 crore at the upper end of the band.

The sale includes a fresh issue of 21 crore shares (worth ₹6,846 crore) and an offer for sale (OFS) of 26.58 crore shares (worth ₹8,665.87 crore). Retail investors can apply for the IPO with a minimum lot of 46 shares, requiring an investment of ₹14,996. Small Non-Institutional Investors (NII) must bid for at least 14 lots, amounting to ₹2,09,944. Large Non-Institutional Investors (HNI) can participate with a minimum of 67 lots, which comes to ₹10,04,732.

Qualified Institutional Buyers (QIBs) will receive 49.87% of the total issue, retail investors 34.91%, and Non-Institutional Investors 14.96%. Kotak Mahindra Capital Ltd. is serving as the book running lead manager, while MUFG Intime India Ltd. is the issue registrar.

The subscription period is open from October 6 to October 8, with allotment expected to be completed by October 9. Successful applicants will have shares credited to their demat accounts on October 10, the same day refunds will be processed for non-allottees. The shares are likely to debut on the BSE and NSE on October 13.

Proceeds from the IPO will be used to strengthen the company’s Tier-I capital base, supporting future lending and capital requirements.

In Q1 FY26, the company posted a 114.4% increase in profit after tax (PAT) to ₹989.89 crore from ₹461.66 crore in Q1 FY25. Its revenue from operations grew 17.1% YoY to ₹7,664.8 crore in FY25, up from ₹6,546.3 crore in FY24.

According to Investorgain.com, Tata Capital's shares are being traded at a 9% premium on the grey market. Its GMP currently stands at ₹28 above the upper IPO price band.