The Morning Brief Dissecting 2025’s Biggest IPO: Tata Capital
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Sep 30, 2025 Tarun Singh, Managing Director of Highbrow Securities and IPO expert, shares insights on Tata Capital's significant upcoming IPO. He discusses the strategic decision to price the IPO below prior levels to attract retail investors and the timing influenced by regulatory changes. Tarun warns about potential risks from the merger with Tata Motors Finance, highlighting challenges in loan mix and commercial vehicle exposure. He also emphasizes the importance of strong housing finance to offset stresses and the valuations being in line with industry standards.
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Discounted Pricing To Broaden Investors
- Tata Capital's IPO is set at ₹15,512 crore and priced below recent unlisted and rights levels to widen investor base.
- The discounted band aims to attract new retail investors despite pressure on unlisted share prices.
Diversified NBFC Scale And Reach
- Tata Capital is India's third-largest diversified NBFC with 25+ lending products and a pan-India branch network.
- Its scale is smaller than Bajaj Finance but diversified across salaried, SME and corporate segments.
Regulatory Timing Shaped The IPO Move
- Timing of the IPO was partly driven by regulatory classification and RBI timelines for upper-layer NBFCs.
- Tata frames the listing as the culmination of 18 years of building a low credit-cost, resilient book.