Tata Capital IPO: Unlisted shares drop ahead of rights issue, RBI deadline to launch offer

Unlisted shares of Tata Capital have come under spotlight in the pre-IPO market as the company is looking to raise funds via rights issue, ahead of launching its primary offering in a month or two. However, the recent IPO of HDB Financial Services has given a reality check to its stock price, which has taken a hit recently.

According to the dealers in the unlisted market, shares of Tata Capital have tumbled to Rs 875-900 range from Rs 1,000-1,050 levels after the announcement of HDB Financial Services price band. They said that euphoria settled down marginally after HDB announced its price band but the Tata Capital share continued to command a strong premium in pre-IPO space.

Sandip Ginodia, CEO of Kolkata-based Altius Investech said that the stock will see another round of correction when the price band of Tata Capital shall be announced formally as the valuations are currently stretched at these levels. He is expecting Tata Capital to launch its IPO in the next 40-60 days.

"Lofty valuations for Tata Capital will not sustain as the company will launch its IPO at reasonable prices, like HDB Financial. One should learn a lesson from this," Ginodia added. "There is nothing wrong about the company including parentage of Tata Group and sound business model, but valuations are not justified."

On June 26, The company board of Tata Capital announced to raise Rs 1,751.85 crore via rights issue by offering 5,10,74,292 equity shares at an issue price of Rs 343 apiece. The rights entitlement ratio has been set in the 1:78 ratio, meaning one equity share for every 78 equity shares held by existing shareholders. The rights issue will open on July 4 and shall conclude on July 13.

Hitesh Dharawat, co-founder of Mumbai based boutique firm Dharawat Securities said that the rights issue price has become the parameter for the IPO price range. One can expect a price range around Rs 500 for this IPO. "Tata Capital shall draw a strong investor interest considering the Tata brand name, solid fundamentals and sound business profile," he said.

According to the shareholding pattern of Tata Capital as of June 13, 2025, Tata Sons owned 88.58 per cent stake in the company, while other Tata Group entities owned 6.95 per cent stake. International Finance Corporation and individual investors held 1.80 per cent stake in the company each. 

Tata Capital is eyeing stock market listing  in response to the Reserve Bank of India’s (RBI's) mandate requiring all upper-layer non-banking financial companies (NBFCs) to list by September 2025. It is looking to raise around $2 billion (Rs 17,200 crore) from primary markets. Tata Capital had filed a confidential DRHP with Sebi in April 2025 and markets regulator cleared its papers in June.