Tata Capital IPO: A Comprehensive Guide for Investors
Tata Capital Ltd, the financial services arm of the Tata Group, is all set to launch its initial public offering (IPO) on October 6, 2025. The issue will close on October 8, 2025, as per the company’s red herring prospectus. In this article, we will delve into the details of the IPO, including the issue size, price, and what it means for investors.
IPO Details: Issue Size and Price
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. The 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 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.
For more information on IPO proceeds and how companies utilize them, check out our detailed guide.
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. Tata Capital plans no pre-IPO placement ahead of its market debut.
Financial Performance
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.
To understand more about NBFC financials and how they impact investment decisions, read our in-depth analysis.
Investor Sentiment
The IPO is expected to generate significant interest among investors, given the company’s strong financial performance and its position within the Tata Group. However, it’s essential for investors to do their own research and consider their own risk tolerance before investing in the IPO.
For tips on IPO investment strategies, check out our expert advice.
Conclusion
In conclusion, the Tata Capital IPO is a highly anticipated event in the Indian stock market. With its strong financial performance and the backing of the Tata Group, the company is well-positioned for growth. However, investors should carefully consider their investment decisions and do their own research before participating in the IPO.
Stay tuned for more updates on the Indian stock market and IPO news. For more information on investing in India, check out our comprehensive guide.