Tata Capital IPO Price: Rights Issue Hints at INR 325-365 Per Share!

Tata Capital is the financial services arm of the Tata Group. The company is all set to make a splash in the Indian markets with its highly anticipated public offer. Tata Capital IPO could be in the range of INR 14,000 – 16,000 crore.

If this happens, it will become the fourth-largest IPO to be listed in India. Until now, Hyundai Motors India is the undisputed winner with an issue size of INR 27,858.80 crore. Tata Capital will be the second company of Tata Group to bring its IPO; before this, Tata Technologies IPO created a stir in the stock market.

Tata Capital IPO Details

• Issue Size: INR 14,000-16,000 crore
• New Issue: INR 7,000-7,500 crore
• OFS: INR 7,000-9,000 crore
• Valuation: USD 11 billion (INR 90,000 crore)
• IPO Price: Estimated INR 325-365 per share (based on rights issue pricing)
• Pre-IPO Unlisted Price: INR 1,020 per share
• PB Multiple: 3
• Shares Outstanding pre IPO: 370 crore
• Fresh Equity: 23 crore shares

Dual-Faceted Fundraising: IPO and Rights Issue

Tata Capital is not stopping at the IPO alone. In a parallel move, the company has announced a Rights Issue of INR 1,504 crore for its existing shareholders. The Rights Issue is as follows:

• Total Equity Shares: 5.35 crore
• Face Value: INR 10 per share
• Issue Price: INR 281 per share (including INR 271 premium)
• Issue Ratio: 1 share for every 70 shares held
• Offer Period: 07 March 2025 – 16 March 2025

This will help Tata Capital to raise capital before listing and reward its existing shareholders to participate in the company’s growth at a preferential price.

Tata Capital IPO Price Projection Based on Rights Issue

Tata Capital has not announced the IPO price, but an estimate can be derived from the rights issue price of INR 281 per share. Generally, rights issues are priced at 10-30% discount to the fair market value. So the IPO price is expected to be in the range of INR 325 – 365 per share which is also in line with the company’s valuation of INR 90,000 crore post listing.

This range also takes into account the pre-IPO unlisted market price of INR 1,020 per share which indicates strong demand and listing gains.

Market and Growth Prospects

Tata Capital is a diversified financial institution with interest in retail and corporate lending, wealth management and infrastructure financing. With India’s economy growing and credit demand rising, the company is well poised to benefit from future opportunities.

Investors should also note the broader financial sector trends. With India’s NBFC (Non-Banking Financial Company) space evolving, strong players like Tata Capital will benefit from increasing credit penetration, digital lending and regulatory positivity.

Conclusion

IPO looks good for short-term listing gains and long-term portfolio inclusion. With Tata Capital’s brand, financials and expansion plans, this IPO is expected to see a lot of interest among investors

For those who already hold Tata Capital shares, the Rights Issue at INR 281 per share provides an attractive entry point. For fresh investors eyeing the IPO, it is likely to see robust demand, with a high probability of oversubscription.

As always, while the opportunity is lucrative, investors should conduct their due diligence, assess their risk appetite, and consult their financial advisors before making any investment decisions. But if history is any guide, Tata Group offerings rarely disappoint.

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