India's biggest IPO of 2025 priced 55% below unlisted value
What's the story
Tata Capital Ltd has announced a price band of ₹310-₹326 per share for its upcoming initial public offering (IPO), well below its recent rights issue price of ₹343 and nearly 55% lower than the current unlisted market price of ₹735. The stock, which traded at ₹1,075 in the grey market in early June, has fallen 32% in recent weeks amid market volatility. Unlisted shares had peaked at ₹1,125 in April, marking a nearly 70% decline to the IPO band.
IPO specifics
Post-money equity valuation cut by 5%
Tata Capital, the flagship financial services firm of the Tata Group, has decided to cut its post-money equity valuation by 5%. The new valuation stands at around $15.7 billion (₹1.39 lakh crore), down from an earlier planned $16.5 billion (₹1.46 lakh crore). For unlisted investors, the IPO marks painful markdowns. For fresh IPO applicants, however, the lower entry point may prove an advantage.
Investor interest
Tata Capital IPO will be largest in India in 2025
Tata Capital IPO is poised to be the largest in India in 2025. The company is aiming to raise approximately ₹17,200 crore, making it the biggest public issue launched this year so far. The IPO is structured as a combination of a fresh issue and an offer for sale, with Tata Sons planning to offload up to 230 million shares. LIC is likely to be a major investor in this issue, with the IPO expected to launch between October 6-8.