Tata Capital is preparing to launch its Initial Public Offering (IPO) in the week of September 22, with a targeted market debut by September 30. The IPO aims to raise $2 billion (Rs 17,200 crore) and is expected to value the company at around $11 billion. If successful, this IPO will be the largest public issue in India's financial sector.
IPO Structure and Details
The IPO comprises a total of 47.58 crore shares. This includes a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares. Under the OFS, Tata Sons will offload 23 crore shares, while the International Finance Corporation (IFC) will divest 3.58 crore shares. Currently, Tata Sons holds 88.6% of Tata Capital, and IFC holds 1.8%. The IPO will issue equity shares with a face value of ₹10 each.
Objective of the IPO
The primary objective of the IPO is to strengthen Tata Capital's Tier-1 capital base. The funds raised will support future capital requirements, including lending activities, and ensure sustainable growth and regulatory compliance. This move aligns with the Reserve Bank of India (RBI) mandate requiring upper-layer Non-Banking Financial Companies (NBFCs) to list within three years of classification. Tata Capital was designated as an upper-layer NBFC in September 2022.
Financial Performance
Tata Capital has demonstrated strong financial performance. In Q1 FY26, the company's consolidated net profit more than doubled to ₹1,041 crore. The company's gross loans stood at Rs 2.26 lakh crore as of March 2025, reflecting a 37% compound annual growth rate (CAGR) between FY23 and FY25. Profit after tax rose to Rs 3,646.6 crore in FY25, up from Rs 3,029.2 crore in FY23.
Strategic Significance
The IPO is expected to be the second public listing from the Tata Group in recent years, following the debut of Tata Technologies in November 2023. The listing is subject to market conditions and necessary regulatory approvals.
Additional Information
Tata Capital filed its draft prospectus with the Securities and Exchange Board of India (SEBI) on August 4. SEBI approved the IPO on June 21, 2025. Kotak Mahindra Capital Co. Ltd. is the book-running lead manager, and MUFG Intime India Pvt. Ltd. is the registrar for the issue.
