Tata Capital, the financial services arm of the Tata group, will launch its much-awaited initial public offering (IPO) on October 6, according to an official statement. The non-banking financial company (NBFC), a subsidiary of Tata Sons, filed its red herring prospectus (RHP) with the capital markets regulator, the Securities and Exchange Board of India (Sebi) and the exchanges on September 26.

The Tata Capital IPO is a mix of fresh equity and an offer for sale (OFS) by existing shareholders, with the company aiming to raise around ₹16,400 crore. If successful, this will be the largest public issue of 2025, surpassing the ₹12,500-crore IPO of HDB Financial Services, a subsidiary of HDFC Bank. It will also mark the Tata group’s second market debut in recent years, after the listing of Tata Technologies in November 2023.

Industry sources told Fortune India that Tata Capital is eyeing a market valuation of around $16.5 billion, a sharp jump from the $11-billion valuation it was pegged at when it filed the confidential IPO papers with Sebi in April this year.

Key details about the Tata Capital IPO

According to the exchange filing, Tata Capital’s three-day IPO will be open for bidding from October 6 to 8, while the anchor book will open on October 3. The company is set to announce its price band and listing date early next week.

"The offer comprises a fresh issue of up to 210,000,000 equity shares of face value of ₹10 each and an offer for sale by certain selling shareholders of the company of up to 265,824,280 equity shares,” Tata Capital said in an exchange filing.

"Further, please note that the Bid / Offer opens on Monday, October 6, 2025 and closes on Wednesday, October 8, 2025. The Anchor Investor Bidding Date shall be Friday, October 3, 2025,” as per the filing.

The much-anticipated Tata Capital IPO comes just in time to meet the Reserve Bank of India’s listing mandate. The NBFC was originally required to list its shares on the stock exchanges by the end of September, but the deadline has been extended, giving the company until the end of October to complete the process.

The IPO of the Tata Sons-backed NBFC will comprise a mix of fresh equity issuance and an offer for sale (OFS), totaling 47.58 crore shares with a face value of ₹10 each. Of this, the company will issue up to 21 crore new shares, while existing shareholders plan to sell up to 26.58 crore shares.

As part of the OFS, Tata Sons, led by N. Chandrasekaran, intends to offload up to 23 crore shares, while the International Finance Corporation (IFC) will divest up to 3.58 crore shares. Currently, promoter entities hold 95.6% of Tata Capital, or 385.55 crore shares, with Tata Sons accounting for the bulk at 88.6%. IFC owns 7.16 crore shares, representing a 1.8% stake.

The remaining shareholding is spread across other Tata group companies and trusts, including TMF Holdings, Tata Investment Corporation, Tata Motors, Tata Chemicals, Tata Power, Tata International, and Tata Consumer Products.

According to the IPO documents filed with Sebi, the proceeds from the fresh issue will be used to strengthen the company’s Tier-1 capital base and meet future funding needs, including onward lending.