Tata Capital IPO: A New Opportunity for Indian 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.
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.
Why is the Tata Capital IPO Significant for Indian Investors?
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%.
IFC currently holds 7.16 crore shares worth a 1.8% stake in the firm. The IPO will not only provide an opportunity for investors to own a piece of the Tata Group’s financial services business but also help the company augment its tier–I capital base to meet its future capital requirements.
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 likely to attract investor interest in the IPO.
How to Invest in the Tata Capital IPO
To invest in the Tata Capital IPO, investors can apply through their Demat Account or through a broker. The issue is expected to be oversubscribed, given the strong demand for Tata Group companies’ stocks. Investors can check the IPO allotment status on the company’s website or through their broker.
Tata Capital IPO: Key Details
- IPO opening date: Oct. 6, 2025
- IPO closing date: Oct. 8, 2025
- Issue size: Up to 21 crore equity shares (fresh issue) and up to 26.6 crore equity shares (OFS)
- Promoter shareholding: Tata Sons (88.6%), other Tata group companies (7%), and IFC (1.8%)
- Book running lead managers: Kotak Mahindra Capital Co., Axis Capital Ltd., BNP Paribas, Citigroup Global Markets India Pvt., and HDFC Bank Ltd.
Conclusion
The Tata Capital IPO is a significant event for Indian investors, offering an opportunity to own a piece of the Tata Group’s financial services business. With a strong financial performance and a large issue size, the IPO is expected to attract significant investor interest. Investors can apply for the IPO through their Demat Account or through a broker and check the IPO news and updates on the company’s website or through their broker.
For more information on the Indian stock market and IPO investing, please visit our website. We provide stock market tips and investing news to help investors make informed decisions.