Tata Capital raises Rs 4,642 crore from 135 anchor investors ahead of Rs 15,500-crore IPO

The price band for the offer has been fixed at Rs 310-326 per share

Tata Capital, the flagship financial services company of the Tata group and a subsidiary of Tata Sons, has raised Rs 4,641.8 crore from 135 anchor investors on October 3, a day prior to the launch of its IPO for the public subscription.

The biggest IPO of the current calendar year and largest since Hyundai Motor India's Rs 27,859-crore offer last year will open for the public on October 6 and close on October 8, fetching Tata Capital Rs 15,512 crore at the upper price band.

The non-banking finance company is issuing 21 crore fresh equity shares, while promoter Tata Sons and investor International Finance Corporation are selling 26.58 crore equity shares through offer-for-sale. The price band for the offer has been fixed at Rs 310-326 per share.

Tata Capital on Friday has finalised allocation of 14.23 crore equity shares to 135 anchor investors at Rs 326 per share, as per the filing to exchanges.

Insurance major  Life Insurance Corporation (LIC) has emerged as the biggest anchor investor in the Tata Capital IPO.

Moneycontrol was the first to report on September 23 that LIC would make a big bet on the issue.

Marquee global investors like Morgan Stanley, Goldman Sachs, Citigroup, Amansa Holdings, Nomura, Government Pension Global Fund, WCM Investment Management, NFU Mutual Global Alpha Fund, Ashoka WhiteOak, Marshall Wace, Amundi Funds, Societe Generale, and Allspring Global Investments participated in the anchor book.

Eighteen (18) domestic mutual fund houses including WhiteOak Capital, ICICI Prudential MF, HDFC AMC, Aditya Birla Sun Life AMC, DSP MF, Axis Mutual Fund, Nippon Life, Edelweiss, Kotak Mahindra AMC, Motilal Oswal AMC, UTI AMC, Bandhan MF, Mahindra Manulife, Baroda PNB Paribas MF, Invesco India, Mirae Asset, and PGIM India acquired 5.06 crore Tata Capital shares for Rs 1,650.4 crore.

Several insurance companies also showed robust interest in the Tata Capital IPO including SBI Life Insurance, HDFC Life Insurance, ICICI Lombard General Insurance, SBI General Insurance, Bharti Axa Life Insurance, Aditya Birla Sun Life Insurance, Canara HSBC Life Insurance, Navi General Insurance, and Reliance General Insurance.

Tata Capital, valued at over Rs 1.31 lakh crore, will utilise fresh issue proceeds towards augmenting its Tier – I capital base to meet future capital requirements including onward lending, arising out of the growth of the business, while the offer-for-sale money will go to two selling shareholders including IFC.

International Finance Corporation (IFC) is set to receive nearly Rs 1,168 crore by selling 3.58 crore equity shares via OFS at the upper price band, against its investment of Rs 89.56 crore for the said shares at a weighted average cost of acquisition of Rs 25 per share.

Tata Capital claims the third largest diversified NBFC in India with total gross loans of Rs 233,400 crore as of June 2025, focusing on retail and SME customers, with loans to such customers forming 87.5 percent of its total gross loans. In addition, 80 percent of its loan book was secured and organic book accounted for over 99 percent of the loan book.

Meanwhile, in the grey market, Tata Capital IPO shares attracted around 4-6 percent premium over the upper price band, the market observers said.

The company will finalise its IPO share allotment by October 9, while Tata Capital shares will be available for trading on the BSE and NSE effective October 13.

Kotak Mahindra Capital Company, Axis Capital, BNP Paribas, Citigroup Global Markets India, HDFC Bank, HSBC Securities and Capital Markets (India), ICICI Securities, IIFL Capital Services, JP Morgan India, and SBI Capital Markets are acting as the merchant bankers for the Tata Capital IPO.