Tata Capital, the non-banking financial arm of the Tata Group, has commenced investor roadshows for its highly anticipated initial public offering (IPO) aiming to raise ₹17,000 crore. The IPO is expected to be the largest in 2025. The roadshows target both global and domestic investors and are designed to generate enthusiasm by showcasing Tata Capital's diversified lending portfolio, strong fundamentals, and the trusted Tata brand.
The IPO comprises a fresh issue of up to 21 crore equity shares and an offer for sale (OFS) of up to 26.58 crore shares, aggregating to 47.58 crore shares. As part of the OFS, promoter Tata Sons plans to offload up to 23 crore shares, while the International Finance Corporation (IFC) will sell up to 3.58 crore shares. The fresh proceeds will primarily be used to augment Tier–I capital, ensuring the company meets its capital requirements for lending and future expansion.
The company's senior leadership is spearheading outreach efforts in key financial hubs, including Hong Kong, Singapore, the United Kingdom, and the United States. These global roadshows will be followed by domestic events closer to the IPO date, with a greater focus on retail investor participation.
Tata Capital’s IPO is not only aimed at raising capital but also fulfilling regulatory requirements. The Reserve Bank of India (RBI) has classified Tata Capital as an "upper layer" NBFC, mandating the company to go public by September 2025 under new transparency norms for large non-banking financial companies. Tata Capital was categorized as such in September 2022, giving it until September 2025 to complete the listing process.
The company filed an updated Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on August 4, 2025. Regulatory approvals are already in place, including clearance from SEBI. MUFG Intime has been appointed as the registrar for the IPO. The final IPO dates, pricing, and anchor book details are expected to be disclosed in the coming weeks. Sources suggest that Tata Capital may fix the price band at approximately ₹375-400 per share during the IPO.
Tata Capital reported robust financials in FY25, with net profit rising nearly 10% to ₹3,655 crore. Revenue from operations surged 57% to ₹25,719 crore. As of March 31, 2025, the company's loan book stood at ₹2.26 lakh crore, making it the third-largest diversified NBFC in India.
The roadshows aim to generate investor interest, highlight Tata Capital's strategic vision, and build confidence around what is set to be one of the largest financial services IPOs of the year. Tata Capital's diversified lending portfolio, strong parentage under Tata Sons, trusted brand legacy, and aggressive digital transformation strategy are all factors likely to attract heavyweight investors. The IPO offers institutional investors a chance to tap into India's expanding credit market, long-term growth potential supported by digital adoption and diversified lending, and the security of a Tata-backed business with proven governance standards.
