Mumbai, August 31, 2025 — Tata Capital, the non-banking financial arm of the Tata Group, is gearing up for a blockbuster $2 billion Initial Public Offering (IPO) in the final week of September. The company is aiming for a valuation of approximately $11 billion, marking one of the most significant public listings in India’s financial services sector this year.
IPO Structure & Share Sale
- Total Shares on Offer: 47.58 crore
- Fresh Issue: 21 crore equity shares
- Offer for Sale (OFS): 26.58 crore shares
- Sellers in OFS:
- Tata Sons: 23 crore shares
- International Finance Corporation (IFC): 3.58 crore shares
The funds will primarily be used to boost the company’s Tier-I capital base, supporting expansion in lending capacity and future business needs.
Timeline & Regulatory Context
- IPO Launch: Week beginning September 22, 2025
- Listing Date: Expected to make its stock market debut by September 30, 2025
- RBI Mandate: This listing fulfills the Reserve Bank of India’s requirement that upper-layer NBFCs (designated in September 2022) must go public within three years.
Strong Financial Backdrop
- Q1 FY26 Performance: Net profit more than doubled to ₹1,041 crore, up from ₹472 crore in the previous year’s quarter.
- Annual Growth:
- Net Profit (FY25): ₹3,646.6 crore (from ₹3,029.2 crore in FY23) — ~20% growth
- Gross Loans: ₹2.26 lakh crore as of March 2025 (~37% CAGR over FY23–FY25)
- Asset Quality: Gross NPA at 1.9%, Net NPA at 0.8%
Market Implications & Peer Comparison
- This IPO is set to become India’s largest in the financial services sector and the Tata Group‘s second public listing, following Tata Technologies’ debut in 2023.
- Market Sentiment: Investor enthusiasm appears muted—unlisted share prices have declined ~8% in the past month—though strong financials could offset concerns.
- Strategic Positioning: The IPO strengthens Tata Capital’s position and enhances financial transparency, while supporting regulatory compliance and future growth.