Tata Capital IPO
Mumbai – Tata Capital, the influential non-banking financial arm of the Tata Group, is set to make a historic stock market debut with its ₹17,200 crore (approximately $2 billion) initial public offering (IPO). The IPO, the largest ever in India’s financial sector, will open for subscription on October 6, 2025, and close on October 8.
The company is targeting a valuation of approximately $18 billion through this historic issue. This IPO follows the successful listing of Tata Technologies in November 2023 and is another significant public offering from the prestigious Tata Group.
Offer Details and Structure
The IPO comprises a total of 475.8 million equity shares. It is divided as follows:
* A fresh issue of 210 million equity shares.
* An offer for sale (OFS) of 265.8 million shares by existing stakeholders.
Under the OFS, Tata Sons, the primary promoter, will sell 230 million shares. The International Finance Corporation (IFC) will sell the remaining 35.8 million shares. Before the IPO, Tata Sons held an 88.6% stake in the company, with IFC holding 1.8%.
Anchor investor bidding is scheduled for October 3, 2025.
Financial Position and Use of Proceeds
Tata Capital has reported strong financial growth. The company generated a post-tax profit of ₹3,655 crore in FY2025, up from ₹3,327 crore in FY2024. Revenue also saw significant growth, increasing from ₹18,175 crore in the previous fiscal year to ₹28,313 crore in FY2025.
Proceeds from the new share issue will be primarily used to strengthen the company’s Tier-1 capital base. This capital infusion aims to support future lending activities and accelerate the overall business growth of this financial services giant, which has served over 7 million customers since it began lending in 2007.
Regulatory Compliance and Market Significance
This public listing fulfills a key mandate from the Reserve Bank of India (RBI). Tata Capital was designated an “upper-layer” NBFC in September 2022, requiring such entities to be listed on stock exchanges within three years of classification.
The IPO is being managed by a large consortium of leading financial institutions, including Kotak Mahindra Capital, Axis Capital, BNP Paribas, HDFC Bank, ICICI Securities, J.P. Morgan India, and SBI Capital Markets.