Tata Capital IPO: A New Opportunity For Investors
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. This IPO is expected to be one of the most closely watched offerings of the year, given Tata Capital’s position in the financial services sector.
IPO Details: Issue Size and Promoter Shareholding
The 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, which will help in augmenting its tier–I capital base to meet future capital requirements.
Currently, Tata Sons owns an 88.6% stake in the NBFC on a fully diluted basis, while other Tata group companies own another 7%. IFC currently holds 7.16 crore shares worth a 1.8% stake in the firm. The public issue is expected to bring in fresh capital and reduce the promoter’s stake, making the company more attractive to investors.
Utilization of IPO 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. This move is expected to strengthen the company’s financial position and support its future growth plans.
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Book Running Lead Managers and No Pre-IPO Placement
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. Notably, Tata Capital plans no pre-IPO placement ahead of its market debut, which means that the company is relying solely on the IPO to raise capital.
Tata Capital’s Financial Performance
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. This strong financial performance is a positive indicator for investors looking to participate in the IPO.
Listing and Market Expectations
Once the listing goes through, Tata Capital will be the 17th Tata Group company to be publicly traded. The listing is expected to bring more transparency and accountability to the company, which could lead to better governance and management practices.
Investors are eagerly awaiting the IPO, as it provides an opportunity to invest in a well-established financial services company with a strong parentage. The issue size and promoter shareholding are key factors that will influence the IPO’s success. For more information on Upcoming IPOs and their analysis, visit our website.
Conclusion
In conclusion, the Tata Capital IPO is a significant event in the Indian stock market, offering investors a chance to participate in the growth of a leading financial services company. With a strong financial performance, a well-established brand, and a promising future outlook, the IPO is expected to generate considerable interest among investors. As the IPO approaches, it’s essential for investors to stay informed and make informed decisions based on their investment goals and risk appetite.
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