Mumbai: Unlisted shares of Tata Capital have seen a notable correction in the pre-IPO market following the announcement of its upcoming ₹1,751.85 crore rights issue and comparisons with the recent HDB Financial Services IPO. Once trading at ₹1,000–₹1,050, Tata Capital's shares have now slipped to the ₹875–₹900 range, according to unlisted market dealers. The drop comes amid tempered sentiment after HDB's price band was revealed, leading to recalibrated expectations for Tata Capital's valuation.
On June 26, Tata Capital's board approved a rights issue of 5.1 crore shares at ₹343 each, in a 1:78 ratio, open from July 4 to July 13. Experts believe this issue price may influence the upcoming IPO pricing. Despite the correction, Tata Capital continues to command a premium, thanks to its strong Tata Group lineage and robust fundamentals.
Industry observers, including Sandip Ginodia (Altius Investech) and Hitesh Dharawat (Dharawat Securities), anticipate the IPO could be launched within 40–60 days, possibly at a price around ₹500. Tata Capital aims to raise around ₹17,200 crore (~$2 billion) through its public offering in compliance with RBI's September 2025 listing mandate for upper-layer NBFCs. Its DRHP was cleared by SEBI in June 2025.
Tata Capital, a major non-banking financial company (NBFC) under the Tata Group umbrella, is preparing to hit the primary market with a highly anticipated ₹17,200 crore IPO. In the run-up to the listing, the company announced a ₹1,751.85 crore rights issue, sparking movement in the unlisted market. Unlisted shares of Tata Capital, which were trading at a premium of ₹1,000–₹1,050, have now corrected to ₹875–₹900, as per dealers tracking the grey market.
The rights issue will offer 5.1 crore shares at ₹343 apiece, with a 1:78 entitlement ratio, open from July 4 to July 13, 2025. This pricing has become a crucial benchmark for estimating the IPO valuation. Industry experts suggest the IPO may be priced around ₹500, with strong demand expected due to Tata Capital’s solid fundamentals, Tata brand trust, and diversified lending portfolio.
Tata Capital had filed a confidential DRHP in April 2025, which SEBI cleared in June. The IPO is expected in the next 40–60 days to comply with the RBI’s directive that all upper-layer NBFCs must list by September 2025.
Despite near-term price correction, market participants view the rights issue as a pricing anchor and remain optimistic about long-term prospects given the company’s scale, brand, and strategic positioning.
