Tata Capital IPO anchor book attracts Rs 4,642 cr with 5 times subscription frenzy

New Delhi, Oct 3 (PTI) Non-banking financial company Tata Capital on Friday collected Rs 4,642 crore from 68 domestic and global institutional investors, with the anchor book witnessing demand nearly five times higher than the allocated amount.

This comes days before its much-awaited Rs 15,512 crore maiden public offering open for subscription.

The anchor round received widespread participation from domestic and foreign institutional investors, including the Life Insurance Corporation of India (LIC), ICICI Prudential Mutual Fund (MF), Nippon India MF, Motilal Oswal MF, Amansa Holdings, Nomura, Morgan Stanley, Government Pension Fund Global, and Goldman Sachs, according to a circular uploaded on the BSE website.

Tata Capital has allotted 14.24 crore equity shares to anchor investors at Rs 326 apiece, which takes the transaction size to Rs 4,642 crore, the circular showed.

Its diversity of participants, spanning domestic mutual funds, sovereign funds, insurers, and FPIs, reflects the broad appeal of Tata Capital's financial services model.

"Due to strong demand, investors did not get the kind of stake they were looking to have in the company and had to be satisfied with limited subscription," market sources said.

The company's maiden public offering will open for subscription during October 6-8 in the price range of Rs 310 to Rs 326 per share.

At the top end of the band, the non-banking financial company (NBFC) commands a valuation of about Rs 1.38 lakh crore.

The IPO, comprising a total of 47.58 crore shares, includes a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares.

Under the OFS component, Tata Sons will offload 23 crore shares, while the International Finance Corporation (IFC) will divest 3.58 crore shares.

Currently, Tata Sons holds an 88.6 per cent stake in Tata Capital, while IFC owns 1.8 per cent holding.

Proceeds from the IPO will be used to strengthen the company's Tier-1 capital base, supporting future capital requirements, including onward lending.

Tata Capital, the financial services arm of the Tata Group, earlier filed draft papers in April through the confidential pre-filing route and secured approval from market regulator Sebi in July.

This will mark Tata Group's second public listing in recent years, following the debut of Tata Technologies in November 2023.

The IPO is being undertaken in line with the Reserve Bank of India's (RBI) listing mandate for upper-layer NBFCs, which requires them to be listed within three years of classification.

Tata Capital was designated as an upper-layer NBFC in September 2022.

For the financial year 2024-25, Tata Capital reported a profit after tax (PAT) of Rs 3,655 crore, up from Rs 3,327 crore in FY24.

Its revenue also witnessed a sharp increase to Rs 28,313 crore in FY25 from Rs 18,175 crore in the previous fiscal.

Since commencing lending operations in 2007, Tata Capital has served over 7 million customers as of March 31, 2025.

With a portfolio of more than 25 lending products, the company caters to a diverse customer base, including salaried and self-employed individuals, entrepreneurs, small businesses, SMEs, and corporates.

In addition to lending, Tata Capital also distributes third-party products such as insurance and credit cards, offers wealth management services, and acts as a sponsor and investment manager to private equity funds.

Tata Capital is expected to make its stock market debut on October 13. PTI SP ARI