Tata Capital fast-tracks IPO, eyes listing before RBI’s Sept 30 deadline

Tata Capital is set to launch India’s largest initial public offering (IPO) of 2025, with its ₹17,000 crore (or $2 billion) share sale slated to hit Dalal Street in the last week of September, industry sources told Fortune India. The highly anticipated IPO of one of the leading NBFCs in India will come just in time to meet the Reserve Bank of India’s September 30 listing deadline. The Tata Group company had filed its draft papers through the confidential route in April this year, for which it received approval in late June.

In September 2022, Tata Capital was notified as an ‘upper-layer’ NBFC by the RBI, which made it mandatory to list itself on the exchanges within three years of notification. The deadline for the same is September 2025. In a bid to comply with the RBI’s norms for upper-layer NBFCs, HDB Financial Services — the non-banking subsidiary of HDFC Bank — made its debut in June this year after raising ₹12,500 crore via the IPO route. In a similar trend, Bajaj Housing Finance, another upper-layer NBFC, made a stellar debut in September 2024.

If successful, Tata Capital’s IPO will be the largest-ever public issue from India’s financial sector. It will also mark the Tata Group’s second market debut in recent years, after Tata Technologies’ listing in November 2023.

The listing will also place Tata Capital among India’s biggest-ever offerings, joining the league of Hyundai Motor India’s record-breaking ₹27,858.75 crore IPO in October 2024, Life Insurance Corporation’s ₹20,557.23 crore issue in May 2022, and Paytm’s ₹18,300 crore float in 2021. While smaller than these three, Tata Capital’s IPO will be bigger than Coal India’s ₹15,199.44 crore offering in 2010 and HDB Financial Services’ ₹12,500 crore issue in July 2025.

Here’s all you need to know about Tata Capital IPO:

Tata Capital IPO size is pegged to be around ₹17,000 crore, as per Prime Database. The market value of the Tata group company is aimed at around $11 billion. The IPO of Tata Sons-backed NBFC is a combination of fresh issuance of equity shares and an offer for sale (OFS) of a total of 47.58 crore shares of face value of ₹10 each. The NBFC will issue up to 21 crore new equity shares, while existing shareholders will offload up to 26.58 crore shares.

As part of the OFS, the N Chandrasekaran-led Tata Sons is looking to offload up to 23 crore shares, while the International Finance Corporation (IFC) plans to divest up to 3.58 crore shares. Promoter entities currently own 95.6% of Tata Capital, or 385.55 crore shares, with Tata Sons holding the lion’s share at 88.6%. IFC, on the other hand, owns 7.16 crore shares, translating into a 1.8% stake.

The balance shareholding is distributed among other Tata group companies and trusts, including TMF Holdings, Tata Investment Corporation, Tata Motors, Tata Chemicals, Tata Power, Tata International, and Tata Consumer Products.

As per the IPO document filed with the Sebi, the company intends to use capital raised from fresh equity capital to bolster its Tier-1 capital base and meet future funding requirements, including onward lending.

Profit doubles to ₹1,041 cr in Q1 FY26

On the financial front, Tata Capital’s net profit more than doubled year-on-year to ₹1,040.93 crore in the quarter ended June 2025, from ₹472.21 crore in the same quarter last year. Total income also registered healthy growth, rising to ₹7,691.65 crore in Q1 FY26, from ₹6,557.40 crore in the year-ago period.

Ahead of its IPO filing, Tata Capital raised ₹1,500 crore through a rights issue earlier this year, with Tata Sons and minority shareholders, including IFC, participating in the offering. In addition, the company mobilised $400 million through issuance of dollar-denominated bonds, carrying a coupon of 5.38%.

According to a CRISIL report cited in the company’s draft prospectus, Tata Capital ranked as the third-largest diversified NBFC in India with total gross loans of ₹2,26,550 crore as of March 31, 2025, registering a CAGR of 37.3% between March 2023 and March 2025. The company caters to a wide range of customers, with retail and SME lending forming the bulk of its portfolio at 88.5% of gross loans. Within this, retail finance stood at ₹1,41,114 crore (62.3% of total loans), while SME finance accounted for ₹59,463 crore.

Tata Capital has built a pan-India footprint with 1,496 branches across 1,102 locations in 27 States and Union Territories.

Kotak Mahindra Capital, BNP Paribas, and Citigroup Global Markets are among the bookrunning lead managers for the IPO.

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