Tata Capital to Launch $2 Billion IPO on September 22

1 Sep 2025 , 12:32 PM

Tata Capital, the non-banking financial arm of the Tata Group, is gearing up to launch its much-awaited initial public offering in the week of September 22, according to people familiar with the matter. The issue, pegged at around USD 2 billion (₹17,200 crore), is expected to value the company at close to USD 11 billion. The listing is likely to take place by September 30.

The IPO will comprise 47.58 crore shares. It including a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares, as per the updated draft red herring prospectus filed in August. Tata Sons, which currently holds an 88.6% stake, will sell 23 crore shares, while International Finance Corporation (IFC), with a 1.8% stake, will offload 3.58 crore shares.

Proceeds from the fresh issue will be used to strengthen the company’s Tier-1 capital base and meet future funding needs, including onward lending. If completed, the Tata Capital IPO will be the largest public issue ever in India’s financial sector. It will also mark the Tata Group’s second market debut in recent years, following Tata Technologies’ successful listing in November 2023.

The listing move is in line with the Reserve Bank of India’s requirement for “upper-layer” NBFCs to go public within three years of classification. Tata Capital was designated as an upper-layer NBFC in September 2022. Peers such as HDB Financial Services and Bajaj Housing Finance have already tapped the capital market under this mandate, with Bajaj Housing’s blockbuster IPO in September 2024 listing at a 135 per cent premium.

Analysts tracking the issue point to Tata Capital’s strong financial performance, diversified loan book and stable asset quality as key positives. As of March 2025, the company had gross loans worth ₹2.26 lakh crore. This was growing at a 37% CAGR between FY23 and FY25. Profit after tax rose to ₹3,646.6 crore in FY25 from ₹3,029.2 crore in FY23. Gross NPAs stood at 1.9% and net NPAs at 0.8%, backed by a provision coverage ratio of 58.5%.

The momentum has carried into the current fiscal as well. In Q1 FY26, Tata Capital reported a consolidated net profit of ₹1,041 crore, more than double the ₹472 crore recorded in the same quarter last year. Total income during the period rose to ₹7,692 crore from ₹6,557 crore.

For feedback and suggestions, write to us at [e-mail]