The highly anticipated Tata Capital IPO is soon going to launch as the company has filed an updated Draft Red Herring Prospectus (DRHP) with the markets regulator, SEBI.
The IPO of the financial services arm of the Tata Group comprises both fresh equity shares and an Offer for Sale (OFS), with a total offering size of 47.58 crore equity shares.
Tata Capital IPO: Price band and subscription dates
The IPO is likely to be one of the largest in the space of financial services, with the price band and bidding dates to be announced soon. The listing of shares is expected to be on both the exchanges, BSE and NSE.
Tata Capital IPO: Capital raise plan
Tata Capital propose to raise funds via a two-part structure, according to the DRHP. The company will sell 21 crore fresh equity shares, while the promoters and other selling shareholders will divest up to 26.58 crore equity shares through offer for sale.
Tata Capital IPO: How much will Tata Sons sell?
Tata Sons, the promoter selling shareholder, will dump 23 crore equity shares, as part of the OFS. Other than Tata Sons, International Finance Corporation (IFC), the investor selling shareholder, will offer 3.58 crore equity shares.
Tata Capital IPO: Objectives for raising funds
As per the DRHP, the company will be utilising the raised money to strengthen its Tier-I capital base, enabling future business expansion and onward lending.
This capital infusion is intended to improve Tata Capital’s ability to cater to a wider base of retail, SME, and corporate borrowers.
Tata Capital IPO: Promoter holding Pre-IPO
Tata Sons has a stake of 88.6% in Tata Capital ahead of the IPO, as per the DRHP. While other Tata Group companies hold a combined 7% stake in Tata Capital. IFC owns 1.8%, which it received following the merger of Tata Motors Finance Ltd. (TMFL) with Tata Capital.
Tata Capita and TMFL merger
Tata Motors Finance was merged with Tata Capital in May 2025. TMFL was allotted 18.39 crore equity shares of Tata Capital, following this merger. This consolidation allowed the company to enhance its lending operations in both retail and commercial areas and broaden its customer base.
About Tata Capital
Tata Capital operates as a systemically important non-banking financial company (NBFC). Currently classified as an Upper Layer NBFC by the Reserve Bank of India (RBI), the company was incorporated in 1991 and rebranded in 2007.
Tata Capital provides more than 25 financial products, including consumer loans, SME financing, infrastructure loans, leasing, and wealth management services. As of March 2025, the company had catered to more than 7 million clients through a network of over 1,400 branches throughout India.
Tata Capital Q1
Tata Capital posted a net profit of Rs 1,040.9 crore year-over-year (YoY) for the first quarter of FY26, a jump of 120% compared to Rs 472.2 crore reported during the same period of the last fiscal. Its revenue from operations during the quarter stood at Rs 7,664.8 crore, increasing 17% YoY compared to Rs 6,546.3 crore in Q1 FY25.
The net interest income (NII) surged by 16.8% YoY to Rs 2,866.2 crore in Q1 FY26, as against Rs 2,454 crore recorded in the corresponding period of the last fiscal year.