Tata Capital IPO to Open for Retail Investors on October 6: Unlisted Market Gives Mixed Signals

As per Reuters, Tata Capital is set to launch its highly anticipated ₹17,200 crore IPO on October 6, 2025, offering a mix of fresh equity shares and an offer for sale. Despite strong brand backing, the significant dip in its unlisted share value points to investor caution and valuation pressure ahead of the listing.

Tata Capital IPO Structure and Timeline

The IPO will comprise 21 crore fresh shares and an offer for sale (OFS) of 26.58 crore shares, taking the total offer size to over 47.58 crore shares. Promoter Tata Sons will offload 23 crore shares, and International Finance Corporation (IFC) will sell 3.58 crore shares. The anchor investor bidding opens on October 3, 2025, and the IPO closes on October 8, 2025.

Unlisted Share Performance Prior to IPO

Tata Capital’s unlisted shares, once valued at ₹1,125 in April 2025, are now trading at around ₹735, indicating a 35% decline. Alternate platforms like Wealth Wisdom list them lower, at nearly ₹650. The steep fall reflects weak market sentiment and scepticism surrounding the company's valuations in current market conditions.

Concerns Around Valuation and Market Sentiment

The correction in Tata Capital’s pre-IPO share price can be attributed to various factors: volatile NBFC valuations, macroeconomic uncertainty and lack of liquidity in the unlisted space. Rapid price swings in the grey market have underscored investor caution, even as anticipation for the IPO remains high due to the Tata group’s credibility.

Read More: Tata Capital IPO to raise ₹16,500–17,500 Crore in October; Tata Sons’ stake to fall to 86.5%!

Weighted Average Acquisition Cost Hints at Upside

As per the updated draft red herring prospectus, Tata Sons acquired shares at a weighted average cost of ₹34, while IFC’s average acquisition cost stands at ₹25. These figures suggest a potentially significant listing gain for early stakeholders, though the pricing strategy for the IPO is yet to be disclosed.

Conclusion

Tata Capital’s IPO launch on October 6, 2025, is positioned as one of the largest offerings this year. However, the dip in unlisted share prices signals market caution and calls attention to underlying valuation concerns, making the listing performance one to watch closely.

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