Tata Capital’s ₹17,000 Crore IPO: Set for Oct 2025 Launch
Mumbai, India – The highly anticipated Initial Public Offering (IPO) of Tata Capital, the financial services arm of the salt-to-software conglomerate Tata Group, is expected to launch in the first half of October. The mega public issue is targeting a fundraise of approximately ₹17,000 crore (around $2 billion), positioning it as one of India’s largest IPOs in recent times. The company is seeking a valuation of about $18 billion.
This landmark IPO is driven by a mandate from the Reserve Bank of India (RBI), which classified Tata Capital as an “upper-layer” Non-Banking Financial Company (NBFC) in September 2022. This classification requires such companies to be listed on the stock exchanges within three years to enhance transparency and mitigate systemic risks.
Offer Details and Structure
The IPO will be a combination of a fresh issue of up to 21 crore equity shares and an offer for sale (OFS) of up to 26.58 crore shares by existing shareholders. The promoter, Tata Sons, will be offloading up to 23 crore shares, while the International Finance Corporation (IFC) plans to sell up to 3.58 crore shares. Currently, Tata Sons holds an 88.6% stake in Tata Capital, with IFC holding 1.8%.
The proceeds from the fresh issue are intended to augment the company’s Tier-I capital base to fuel future lending growth.
A Diversified Financial Powerhouse
Established in 2007, Tata Capital has emerged as a significant player in the Indian financial services landscape. The company operates across various segments, catering to a diverse clientele of retail, corporate, and institutional customers. Its key business areas include:
* Commercial and SME Finance: Providing a range of financing solutions to small and medium enterprises and commercial clients.
* Consumer Loans: Offering personal loans, home loans, and other retail credit products.
* Wealth Management: Providing advisory and management services for high-net-worth individuals.
* Cleantech Finance: A growing focus area for the company, with its cleantech gross loan book surpassing ₹18,000 crore in FY25.
* Infrastructure Finance: Funding projects in the crucial infrastructure sector.
Strong Financial Performance
Tata Capital has demonstrated robust financial growth. For the quarter ending June 2025, the company reported a consolidated net profit of ₹1,040.93 crore, a significant increase from ₹472.21 crore in the same period of the previous year. The company’s total income for the same quarter rose to ₹7,691.65 crore from ₹6,557.40 crore year-on-year.
For the fiscal year ended March 31, 2025, Tata Capital’s total income surged by 55.91% to ₹28,370 crore. The Profit After Tax (PAT) for the same period stood at ₹3,655 crore, marking a growth of 9.87% from the previous fiscal. The company’s advances grew by an impressive 40.66% to ₹2,21,950 crore in FY25.
Competitive Landscape and Market Position
The Indian financial services sector is highly competitive, with the presence of established banks and other large NBFCs. Tata Capital’s key competitors include L&T Finance Holdings, Manappuram Finance, and Northern Arc Capital. Despite the competition, Tata Capital’s strong parentage in the Tata Group, its diversified business model, and its focus on emerging areas like green finance provide it with a distinct competitive advantage.
The Road Ahead
Tata Capital has reportedly concluded its investor roadshows globally and is in the process of filing a second draft red herring prospectus (DRHP). The company had initially filed its DRHP with the Securities and Exchange Board of India (SEBI) on August 4, 2025. While the price band for the IPO is yet to be announced, the grey market price for the company’s stock was trading near ₹775 last month. However, there has been a recent correction in the unlisted share price.
The upcoming IPO of Tata Capital is set to be a significant event in the Indian capital markets. It not only provides an investment opportunity in a leading financial services company but also marks a key milestone for the Tata Group, following the successful listing of Tata Technologies in November 2023.
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