Tata Capital IPO Launching on October 6; Anchor Investor Bids Start October 3

Tata Group’s financial services arm, Tata Capital, is all set to launch its highly anticipated initial public offering (IPO) in early October 2025. The IPO is expected to raise around ₹17,200 crore, marking one of the biggest public offers in the Indian financial sector this year. The bidding for anchor investors will begin on October 3, while the IPO will remain open for the public from October 6 to October 8.

IPO Timeline and Key Details

Investors looking to participate in the Tata Capital IPO should note the following timeline:

• Anchor Investor Bids: October 3, 2025

• IPO Opening Date: October 6, 2025

• IPO Closing Date: October 8, 2025

The company has yet to announce the issue price of the shares. However, market analysts estimate the IPO could be valued at approximately ₹17,200 crore, making it a major event for investors seeking exposure to Tata Group’s financial services business.

Lead Managers for the IPO

The book running lead managers (BRLMs) for the Tata Capital IPO include some of India’s top financial institutions:

• Kotak Mahindra Capital

• Axis Capital

• BNP Paribas

• HDFC Bank

• HSBC Securities

• ICICI Securities

• IIFL Capital

• JP Morgan India

• SBI Capital Markets

These institutions will play a crucial role in managing subscriptions, ensuring compliance, and facilitating the smooth execution of the IPO process.

Shares on Offer

According to the Updated Draft Red Herring Prospectus (UDRHP), the Tata Capital IPO will consist of:

• 21 crore new shares issued to raise fresh capital.

• 26.58 crore shares sold through an Offer for Sale (OFS) by existing shareholders.

This brings the total number of shares available in the market to 47.58 crore shares.

Details of Offer for Sale (OFS)

• Tata Sons Private Limited, the promoter, plans to sell 23 crore shares.

• International Finance Corporation (IFC) will offload 3.58 crore shares.

The OFS component allows existing shareholders to liquidate a portion of their holdings while providing new investors an opportunity to participate in Tata Capital’s equity.

Market Pressure on Unlisted Shares

Ahead of the IPO, Tata Capital’s unlisted shares have come under pricing pressure. According to financial platforms such as UnlistedZone and SharesCart.com, the unlisted shares are trading at around ₹735 per share. This is a 35% decline compared to the peak of ₹1,125 per share in April 2025.

Meanwhile, Wealth Wisdom reports an even lower unlisted share price of ₹650, highlighting the volatility and investor sentiment in the pre-IPO market. This downward trend has raised questions among investors regarding the potential IPO pricing and market demand.

Investor Outlook

The Tata Capital IPO is attracting attention from both retail and institutional investors due to the company’s strong affiliation with the Tata Group and its established presence in financial services. Despite the decline in unlisted share prices, analysts believe the IPO could offer a long-term growth opportunity for investors looking to benefit from India’s expanding financial sector.

Investors are advised to monitor the anchor investor bids, which often serve as an indicator of market confidence and demand for the shares.

Conclusion

The Tata Capital IPO, opening on October 6, 2025, represents a significant opportunity for investors to participate in the growth story of one of India’s most respected conglomerates. With 21 crore new shares and 26.58 crore shares through OFS, the IPO is set to be one of the largest this year. While unlisted shares have faced price pressure ahead of the listing, the backing of Tata Sons and institutional investors provides confidence in the offering.

The upcoming IPO is expected to generate substantial market interest, making it a key event for both retail and institutional investors in the Indian financial market.