Tata Capital raises ₹4,641 crore from anchor investors before IPO:Company to launch ₹15,512 crore IPO on Oct 6; LIC is its biggest investor

Tata Group’s financial services company Tata Capital is all set to launch the biggest initial public offering (IPO) in 2025 at ₹15,512 crore from October 6-8. It is the largest public issue after Hyundai Motor India’s ₹27,859 crore IPO last year. On Oct 3, the company raised ₹4,641.8 crore from 135 anchor investors. Tata Capital will issue 21 crore new equity shares in the IPO. Additionally, promoter Tata Sons and investor International Finance Corporation (IFC) will sell 26.58 crore shares via offer-for-sale (OFS). After the IPO, the company’s valuation is expected to be around ₹1.31 lakh crore. LIC is the biggest anchor investor in Tata Capital The company has set the IPO price band at ₹310 to ₹326 per share. On Oct 3, the company sold 14.23 crore shares to 135 anchor investors at ₹326 per share. Among anchor investors, LIC is its biggest investor, acquiring 15.08% of the anchor share valued at ₹700 crore or ₹326 per share. Moneycontrol first reported on September 23 about LIC’s big bid in the anchor funding. Major global investors like Morgan Stanley, Goldman Sachs, Citigroup, Nomura and Amundi Funds also participated in the funding round. 18 Domestic Mutual Funds purchased 5.06 crore shares Eighteen domestic mutual funds, including WhiteOak Capital, ICICI Prudential, HDFC AMC, Aditya Birla Sun Life and Nippon Life collectively purchased 5.06 crore shares worth ₹1,650.4 crore. Additionally, several insurance companies like SBI Life, HDFC Life, ICICI Lombard and Reliance General Insurance have also invested in the anchor round. Tata Capital will use the IPO money to strengthen its Tier-1 operations and expand business. The OFS money will go to Tata Sons and IFC, which will earn around ₹1,168 crore from the sale of its 3.58 crore shares. It had purchased these shares at an average price of ₹25 per share. Major merchant bankers like HDFC Bank are managing the IPO The IPO is managed by merchant bankers like Kotak Mahindra Capital, Axis Capital, Citigroup, HDFC Bank, HSBC, ICICI Securities and SBI Capital Markets. The company filed its Red Herring Prospectus (RHP) with SEBI and stock exchanges on September 26. On August 4, it had filed an updated Draft Red Herring Prospectus (DRHP) with SEBI. Tata Sons has 93% stake in Tata Capital Tata Sons, the holding company, holds about 93% stake in Tata Capital. The remaining stake is held by other Tata Group companies and trusts. Tata Capital has been granted the status of Upper Layer NBFC (Non-Banking Financial Company) by the Reserve Bank of India (RBI). Company became NBFC in September 2022 RBI had asked large NBFCs like Tata Capital to get listed on the stock exchange by September 30. However, RBI had recently granted more time to the company upon its request. As per RBI’s order, Upper Layer NBFCs must be listed on stock markets within 3 years of receiving the NBFC status. Tata Capital qualified for Upper Layer NBFC in September 2022. This means under RBI’s rules, Tata Capital had until September 2025 to get itself listed. Tata Capital is India’s third largest NBFC Tata Capital is India’s third largest diversified non-banking financial company (NBFC) with a total loan book of ₹2,33,400 crore as of June 2025. The company focuses on retail and SME customers, which accounts for 87.5% of its total loans. 80% of its loan book is secured and more than 99% are organic loans. As of March 31, 2024, the company’s AUM was ₹1.58 lakh crore. The company provides personal loans, home loans, car loans, commercial vehicle loans and business loans. It also offers credit cards and digital loans. Excellent Growth in Financials Before IPO Tata Capital has recorded excellent growth in its financial performance before the IPO. In the March 2025 quarter, the company’s net profit increased by 31% to ₹1,000 crore compared to ₹765 crore in the same quarter last year. During the same period, the company’s revenue from operations increased by 50% from ₹4,998 crore to ₹7,478 crore. In the financial year 2024-25, the company’s total net profit increased from ₹3,327 crore to ₹3,655 crore on an annual basis. Meanwhile, the company’s total revenue increased from ₹18,175 crore to ₹28,313 crore.