Tata Capital IPO to Open on October 6, Eyes $2 Billion Fundraise

29 Sep 2025 , 03:48 PM

Tata Capital, the financial services arm of the Tata Group, will hit the capital markets with its initial public offering (IPO) from October 6 to October 8, 2025, with anchor bidding slated for October 3.

The issue is expected to raise about $2 billion (₹17,200 crore), valuing the non-banking financial company at nearly $18 billion.

The IPO will comprise 47.58 crore shares, split between a fresh issue of 21 crore equity shares and an offer for sale of 26.58 crore shares.

Of the offer for sale portion, Tata Sons will divest 23 crore shares, while the International Finance Corporation (IFC) will offload 3.58 crore shares. Tata Sons currently owns 88.6% of Tata Capital and IFC holds about 1.8%.

Funds raised from the fresh issue will be used to boost the company’s Tier-1 capital base, enabling it to expand its lending book and support business growth.

Tata Capital secured approval from SEBI in July after filing draft papers under the confidential pre-filing route in April.

The IPO is set to become the largest public issue in India’s financial services sector, and marks the second Tata Group listing in recent years after Tata Technologies’ debut in November 2023.

The move also fulfils a Reserve Bank of India requirement for upper-layer NBFCs to go public within three years of classification. Tata Capital was categorised as an upper-layer NBFC in September 2022.

In terms of performance, the company reported a profit after tax of ₹3,655 crore in FY25, against ₹3,327 crore in FY24, while revenue climbed to ₹28,313 crore from ₹18,175 crore the previous year.

Since starting its lending operations in 2007, Tata Capital has served more than 70 lakh customers across over 25 lending products, and also offers wealth management, private equity fund management, credit card distribution, and third-party insurance services.

The IPO is being managed by a syndicate of investment banks, including Axis Capital, Kotak Mahindra Capital, BNP Paribas, HDFC Bank, HSBC Securities and Capital Markets, Citigroup Global Markets India, ICICI Securities, IIFL Capital, SBI Capital Markets, and J.P. Morgan India.