The wait for Tata Group’s company Tata Capital to go public is almost over. Reports suggest that the initial public offering (IPO) will open on October 6th
and close on October 8th, while bidding for anchor investors will start on October 3rd. The company has not announced the issue price yet. The IPO size is expected to be around ₹17,200 crore.
Who is Selling Shares?
According to Tata Capital’s updated draft red herring prospectus (UDRHP):
210 million new shares will be issued in the IPO.
265.8 million shares will be sold through an offer for sale (OFS).
This makes a total of 475.8 million shares. Specifically:
Tata Sons Private Limited will sell 230 million shares through the OFS.
International Finance Corporation (IFC) plans to sell 35.8 million shares.
The book running lead managers for the IPO include:
Kotak Mahindra Capital, Axis Capital, BNP Paribas, HDFC Bank, HSBC Securities, ICICI Securities, IIFL Capital, JP Morgan India, and SBI Capital Markets.
Pressure on Unlisted Shares
Ahead of the IPO, Tata Capital’s unlisted shares are under pressure. According to UnlistedZone and Shareskart.com, these shares are trading at around ₹735 per share, down from a peak of ₹1,125 in April—a 35% decline. Meanwhile, Wealth Wisdom estimates the price at ₹650.
Experts explain the drop:
Prashant Tapsey (Mehta Equities) says the decline is due to pressure on the NBFC sector, a broader market correction, and investor caution.
Tarun Singh (Highbrow Securities) adds that the unlisted market’s low liquidity causes significant price fluctuations.