Tata Capital, the financial services arm of the Tata Group, has successfully raised INR 4,642 crore from a robust roster of 68 domestic and global institutional investors through its anchor book — setting a powerful prelude to what is poised to be India’s largest IPO of 2025.
Strong Institutional Backing Led by LIC and Global Giants
The Life Insurance Corporation of India (LIC) emerged as the largest anchor investor, subscribing to INR 700 crore worth of shares — representing 15.08% of the total anchor allocation at INR 326 per share. Tata Capital anchor book saw overwhelming demand, reportedly oversubscribed five times the available allocation, underscoring investor confidence in the company’s fundamentals and growth prospects.
Among the top domestic mutual funds participating were HDFC Mutual Fund, ICICI Prudential Mutual Fund, Nippon India MF, Aditya Birla Sun Life MF, Motilal Oswal MF, and DSP MF. Global heavyweights such as Goldman Sachs, Morgan Stanley, Nomura, Amansa Holdings, and the Government Pension Fund Global (Norway) also featured prominently in the anchor round.
Tata Capital Anchor Allocation
According to a regulatory filing, Tata Capital allotted 14.24 crore shares at INR 326 apiece to the anchor investors, translating to the INR 4,642 crore raised. Of this, 35.55% (5.06 crore shares) were allotted to 18 domestic mutual funds across 59 individual schemes, highlighting strong domestic institutional participation.
Some key allocations included:
- LIC: 2.15 crore shares (INR 700 crore)
- Amansa Holdings: INR 175 crore
- Nomura India Investment Fund Mother Fund: INR 175 crore
- Morgan Stanley Investment Funds Asia Opportunity Fund: INR 146 crore
- Goldman Sachs India Equity Portfolio: INR 52 crore
- Nippon India Large Cap Fund and Government Pension Fund Global: INR 125 crore each
- Motilal Oswal Large Cap Fund: INR 100 crore
Tata Capital IPO Structure & Valuation
Tata Capital IPO comprises a fresh issue of 21 crore shares worth INR 6,846 crore and an Offer for Sale (OFS) of 26.58 crore shares aggregating to INR 8,666 crore by its promoters and existing shareholders.
- Tata Sons, the principal promoter holding 88.6%, will divest up to 23 crore shares.
- International Finance Corporation (IFC), holding 1.8%, will offload 3.58 crore shares.
The price band has been fixed at INR 310–326 per share, valuing Tata Capital at approximately INR 1.38 lakh crore at the upper end. The IPO will open for subscription from 6 to 8 October, with the stock debut expected on 13 October on both BSE and NSE.
Biggest IPO of the Year
Tata Capital’s IPO will surpass HDB Financial Services’ INR 12,500 crore issue earlier this year and stand as the largest Indian public issue of 2025, second only to Hyundai Motor India’s record-breaking INR 27,870 crore listing in 2024. This will also mark the Tata Group’s first IPO in nearly two years, following the successful listing of Tata Technologies in November 2023.
Investor Confidence and Market Sentiment
The oversubscription of the anchor tranche — five times over — signals high institutional confidence, typically considered a leading indicator of strong retail demand once the issue opens. Analysts attribute the enthusiasm to Tata Capital’s diversified business model across lending, wealth management, and housing finance, as well as the Tata Group’s corporate pedigree and credibility in the market.
Regulatory Context and Classification
Tata Capital, classified by the Reserve Bank of India as an upper-layer NBFC since September 2022, was mandated to list publicly within three years under regulatory norms — a requirement now fulfilled through this offering.
Issue Details at a Glance
| Particulars | Details |
|---|---|
| Issue Size | INR 15,512 crore |
| Anchor Portion | INR 4,642 crore |
| Anchor Oversubscription | 5x |
| Price Band | INR 310–326 per share |
| Fresh Issue | 21 crore shares (INR 6,846 crore) |
| Offer for Sale (OFS) | 26.58 crore shares (INR 8,666 crore) |
| Promoters’ Holding (Pre-IPO) | Tata Sons – 88.6%, IFC – 1.8% |
| IPO Dates | 6–8 October, 2025 |
| Expected Listing | 13 October 2025 |
| Estimated Valuation | INR 1.38 lakh crore |
Looking Ahead
With a strong anchor investor lineup, impressive oversubscription levels, and a credible growth narrative, Tata Capital’s IPO has set the tone for a record-breaking market debut. Industry observers expect this listing to further solidify the Tata Group’s dominance in India’s financial services space and bolster investor sentiment amid a vibrant IPO season.
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