Tata Capital IPO: A Comprehensive Guide for Indian Investors
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.
IPO Details: Offer Size, Promoter Shareholding, and More
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?
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%.
Financial Performance: Revenue and Profit Growth
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.
Future Plans: Using IPO Proceeds for Growth
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.
Book Running Lead Managers and IPO Timeline
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.
Listing and Trading: What to Expect
Once the listing goes through, Tata Capital will be the 17th Tata Group company to be publicly traded. 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: Should You Invest in the Tata Capital IPO?
The Tata Capital IPO offers a unique investment opportunity for Indian investors looking to diversify their portfolios. With the company’s strong financial performance and growth prospects, it’s essential to evaluate the issue carefully and consider your investment goals and risk tolerance.
Conclusion: Staying Informed and Making Informed Investment Decisions
As the Tata Capital IPO approaches, it’s crucial for Indian investors to stay informed about the issue and the company’s financial performance. By doing your research and considering your investment options carefully, you can make informed decisions and potentially benefit from the growth of the Indian stock market. For more information on the Indian stock market and investment opportunities, visit our website and stay up-to-date with the latest news and analysis.