Tata Capital IPO: A Major Event in the Indian Stock Market
Tata Capital Ltd, the financial services arm of the Tata Group, is set to launch its initial public offering (IPO) on October 6, 2025. The issue will close on October 8, 2025, according to 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 as a leading non-banking financial company (NBFC) in India.
Tata Capital IPO Details
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.
The public issue is expected to be a significant event in the Indian stock market, with many investors eagerly awaiting the opportunity to invest in Tata Capital. The company’s financial performance has been strong in recent years, with revenue and profit growth driven by its expanding business operations.
Tata Capital’s Financial Performance
In the quarter ended June, Tata Capital posted a revenue of Rs 7,664.81 crore, compared to Rs 6,546.28 crore 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 the fiscal year 2025, Tata Capital 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. These financial results demonstrate the company’s strong growth trajectory and its potential for future expansion.
Use 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. A portion of the proceeds from the fresh issue will be used towards meeting offer expenses.
Book Running Lead Managers
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. These experienced investment banks will help to ensure a smooth and successful IPO process.
No Pre-IPO Placement
Tata Capital plans no pre-IPO placement ahead of its market debut. This means that investors will have a fair opportunity to participate in the IPO and invest in the company’s growth story.
Listing and Trading
Once the listing goes through, Tata Capital will be the 17th Tata Group company to be publicly traded. This will provide investors with another opportunity to invest in the Tata Group’s diversified business operations.
Conclusion
The Tata Capital IPO is a significant event in the Indian stock market, offering investors an opportunity to invest in a leading NBFC with a strong growth trajectory. With its robust financial performance and expansion plans, Tata Capital is well-positioned for future success. Investors should carefully evaluate the company’s prospects and consider investing in the IPO, while also conducting their own research and due diligence.
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