It's raining IPOs on the Dalal Street. While equity markets may be falling due to global uncertainties, the primary market is seeing a long queue of companies looking to go public and investor appetite remains strong.
Tata Capital, the flagship financial services firm of the aviation to software Tata Group, is set to go public in October, with a public issue of around Rs 15,512 crore.
This will be the largest IPO from the Tata Group and the largest ever public issue of a non-banking finance company.
The IPO comes in the wake of the requirement by the Reserve Bank of India that upper-layer non-banking finance companies must list within three years of classification. The public issue will see parent Tata Sons sell 23 crore shares, while International Finance Corp (IFC) shall sell 3.58 crore shares.
The IPO also includes a fresh issue of about 21 crore shares. A price band of Rs 310-326 a share has been set for the public issue.
Currently, parent Tata Sons holds an 88.6 per cent stake in the NBFC, while IFC has a 1.8 per cent stake.
"Our company proposes to utilise the net proceeds from the fresh issue towards augmenting our Tier–I capital base to meet future capital requirements, including onward lending, arising out of the growth of our business," Tata Capital said in the red herring prospectus.
Tata Capital is the third-largest diversified NBFC in India, based on total gross loans of Rs 2.33 lakh crore as at June 30, 2025. The company operates through 1,516 branches across 27 states and union territories.
Tata Capital reported a consolidated revenue of Rs 28,312 crore in the 2024-25 financial year, while net profit stood at Rs 3,655 crore. In the latest April-June quarter, the company reported a revenue of Rs 7,665 crore, up 17 per cent from the year-ago revenue of Rs 6,546 crore. Its quarterly net profit stood at Rs 1,041 crore, which was more than double that of Rs 472 crore it reported a year ago.
India's economy has been growing strongly. The GDP grew 7.8 per cent in the April-June quarter and is widely expected to grow around 6.5 per cent in the full year ending March 2026. In this backdrop, Tata Capital sees a strong growth opportunity.
"Everything is falling in place. For example, our growth rate is among the best in large economies. Now with GST rates coming down, we genuinely believe the future is going to be even brighter. The whole digital infrastructure, which has grown in the country, has made accessibility of credit and financial inclusion far easier," said Rajiv Sabharwal, MD and CEO of Tata Capital.
"Another thing is the availability of money, and at a lower price, all of this is giving an opportunity for credit to grow at a faster pace. We being present in all segments of lending, places us well in this whole landscape," he added.
Tata Capital's public issue comes amid a very strong IPO market. Apart from Tata Capital, flexible workspace company WeWork India Management is also going public in the first week of October, with the price band fixed between Rs 615-648 a share. The WeWork issue is expected to raise up to Rs 3,000 crore.
Equity markets have been extremely volatile over the past year, amid geopolitical uncertainties and US import tariff-related concerns. Foreign Institutional Investors have also been huge sellers in the Indian stock market this year. In this backdrop, the rupee has also been under pressure against the US dollar.
However, the primary market is a completely different story. So far this year, till September, there have been as many as 74 IPOs with companies raising around Rs 85,000 crore. That will further rise to over Rs 1 lakh crore with the IPOs of Tata Capital and WeWork.
Investment bankers attribute the strong appetite seen in the IPO market to the stellar returns some of the new issues have given.
"Last one-year returns of the Nifty50 index are negative. But look at the IPO returns. Hyundai, for instance, has given a 35-40 per cent return. Vishal Mega Mart, priced around Rs 78, is now trading at over Rs 140," said an investment banker.
"When the second market is looking expensive, corporate earnings have slowed down. There are various risk factors, such as geopolitical risks, etc. The IPO market is giving you superior returns," he pointed out.
Domestic institutional flows have been extremely strong over the last few years, and that is also supporting the IPO market momentum.
Also, the investment banker pointed out that foreign portfolio investors are also putting money into IPOs even while they have been selling in the secondary market.
Also Read
"They are churning their portfolio and putting money to work in fresh offerings. They are cutting down their exposure from the number of companies they have to a lesser number where there is a greater degree of confidence," he said.
The IPO market pipeline is extremely strong looking ahead, with several big-ticket companies set to go public.
For instance, Korean electronics giant LG's Indian arm is also expected to launch its public issue in the coming days. According to reports, LG India's IPO is likely to be around Rs 11,500 crore. Eyewear giant Lenskart, Indian ecommerce player Meesho, and India's largest online broking firm Groww are among some of the big names expected to go public over the next few months. So there is every chance that fundraising via IPOs in 2025 could surpass 2024 numbers.
Last year, a record Rs 1.6 lakh crore was raised by companies via mainboard IPOs.
"There is enough and more liquidity in the market to absorb the IPOs," said another investment banker.
There may be global uncertainty, but the appetite may remain, as long as India continues to perform, businesses here continue to do well, and investors are making money, he added.