Tata Capital, one of the most-anticipated IPOs of 2025, is set to open in the first half of October, with the company looking to raise between ₹16,500 crore and ₹17,500 crore. The funds are expected to support the company’s growth initiatives over the next 2–3 years, making it one of the largest offerings in the Indian financial sector this year.
Delay and Merger Impact
The IPO was originally expected in September but was delayed following National Company Law Tribunal (NCLT) approval for the merger of Tata Motors Finance in May. Post-merger, Tata Capital’s credit cost rose to 1.4% from 0.9% earlier, reflecting the integration impact.
Company Overview
Tata Capital is the third-largest NBFC in India and classified as an upper-layer NBFC by the RBI. As of March 31, 2025, the company had assets under management (AUM) of around ₹2.2 trillion, growing at an average rate of 28% over the past three years. Its loan portfolio spans retail, SMEs, and corporate lending, demonstrating diversification.
Subsidiaries and Operations
The company’s mortgage business operates through Tata Capital Housing Finance, which had a portfolio of ₹66,402 crore as of March 31, 2025. Housing loans comprised 58% of the portfolio, while loans against property and builder loans accounted for 27% and 15%, respectively.
Financial Performance
In FY25, Tata Capital reported a profit of ₹2,492 crore on revenues of ₹13,309 crore, according to Tata Sons’ annual report. Global roadshows for the IPO have reportedly generated strong investor interest.
Shareholding and Offer Structure
Currently, Tata Sons owns 92.83% of Tata Capital, with the Tata group holding 95.6% overall. Post-IPO, Tata Sons’ stake will reduce to 86.5%. The International Finance Corporation (IFC), which holds 1.7%, will sell half of its stake.
The IPO will comprise 47.58 crore shares, including a fresh issue of 21 crore shares and an offer for sale of 26.58 crore shares. Of this, Tata Sons will sell 23 crore shares and IFC 3.58 crore shares.
Summary:
Tata Capital’s IPO represents a major milestone for the Tata group’s financial services arm. With a strong growth trajectory, diversified portfolio, and robust profitability, the offering is expected to attract substantial investor interest while strengthening the company’s capital base for future expansion.
Disclaimer:
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