A new heavyweight is heading to Dalal Street. The much awaited Tata Capital IPO is now ready to take on the primary markets. The financial services arm of the Tata Group has officially filed for an IPO. This is one of the most awaited listings of the year. Here’s everything you need to know about the Tata Capital IPO, from the issue details to what is driving the timing.
Tata Capital IPO: What is on offer?
Tata Capital had first filed confidential IPO papers in April. After getting SEBI’s approval in July, it has now submitted its updated draft red herring prospectus (DRHP). The final IPO price band and dates will be announced soon later.
The IPO will see 47.58 crore shares hit the market. This includes a fresh issue of 21 crore shares and an offer for sale (OFS) of 26.58 crore shares by existing shareholders.
Tata Sons, the parent company, plans to offload 23 crore shares. Another 3.58 crore shares will be sold by the International Finance Corporation (IFC), an early investor in the company.
Tata Capital IPO: Why is Tata Capital going public now?
The IPO is not just about raising funds. It is also about meeting regulatory deadlines. The Reserve Bank of India had earlier classified Tata Capital as an “upper layer” NBFC, a category that mandates listing by September 2025.
This brings Tata Capital in line with the RBI’s new transparency norms for large non-banking finance companies.
Tata Capital IPO: What will the money be used for?
The funds from the fresh issue will go towards enhancing Tata Capital’s Tier-1 capital. This gives the company more room to lend and expand in a competitive NBFC market.
Tata Capital IPO: Financial health of the company
Tata Capital posted a strong financial performance in FY25. Net profit rose nearly 10% to Rs 3,655 crore, while revenue from operations jumped 57% to Rs 25,719 crore.
Its loan book stood at Rs 2.26 lakh crore as of March 31, 2025, making it India’s third-largest diversified NBFC.
Tata Capital IPO: Who is leading the IPO?
The issue is being handled by a long list of top investment banks including Kotak Mahindra Capital, Axis Capital, Citi, BNP Paribas, HDFC Bank, HSBC, ICICI Securities, IIFL, SBI Capital, and JP Morgan. MUFG Intime is the registrar.