Tata Capital IPO: An Overview
Tata Capital Ltd, the financial services arm of the Tata Group, is all set to launch its initial public offering (IPO) on Oct. 6, 2025. The issue will close on Oct. 8, 2025, as per the company’s red herring prospectus. The IPO is expected to be one of the most closely watched offerings of the year, given Tata Capital’s position as a leading non-banking financial company (NBFC) in India.
IPO Details
The Tata Capital IPO will comprise a fresh issue of up to 21 crore equity shares and an offer for sale (OFS) of up to 26.6 crore equity shares. Promoter Tata Sons will divest up to 23 crore shares, while International Finance Corporation (IFC) will sell up to 3.6 crore shares through the OFS route. The company will also issue up to 21 crore shares via a primary raise.
The public issue is expected to be among the most closely watched offerings of the year, given Tata Capital’s position as the financial services arm of the Tata Group. Currently, Tata Sons owns an 88.6% stake in the NBFC on a fully diluted basis, while other Tata group companies own another 7%.
Use of Proceeds
Tata Capital proposes to use the fresh issue proceeds for augmenting its tier–I capital base to meet its ‘future capital requirements, including onward lending,’ arising out of the growth of the business. Further, a portion of the proceeds from the fresh Issue will be used towards meeting offer expenses.
Kotak Mahindra Capital Co., Axis Capital Ltd., BNP Paribas, Citigroup Global Markets India Pvt. and HDFC Bank Ltd. are the book running lead managers for the issue. NBFC companies in India have been gaining traction in recent years, and Tata Capital’s IPO is expected to be a major event in the Indian stock market.
Financial Performance
Tata Capital plans no pre-IPO placement ahead of its market debut. Once the listing goes through, Tata Capital will be the 17th Tata Group company to be publicly traded. In the quarter ended June, the NBFC posted a revenue of Rs 7,664.81 crore in comparison to Rs 6546.28 crore posted in the same quarter last year.
The company’s profit for the quarter more than doubled at Rs 1,040.93 crore, against Rs 472.21 crore reported in the quarter ended June 2024. For fiscal year 2025, the Tata’s financial services arm reported a profit of Rs 3,655 crore, an increase from Rs 3,327 crore in the previous fiscal, while its revenue surged to Rs 28,313 crore from Rs 18,175 crore.
Investment Opportunities
The Tata Capital IPO is expected to provide a unique investment opportunity for Indian investors looking to diversify their portfolios. With the Indian stock market expected to continue its growth trajectory, IPO investing strategies are becoming increasingly popular among investors.
Conclusion
In conclusion, the Tata Capital IPO is a highly anticipated event in the Indian stock market. With its strong financial performance and growth prospects, Tata Capital is expected to be a major player in the Indian financial services sector. Stock market news in India will be closely watching the IPO, and investors are advised to do their own research before making any investment decisions.