Amidst the fluctuations in the stock market, investors' attention is now focused on Tata Capital, the non-banking finance company of the Tata Group. Tata Capital has initiated the process of launching its Initial Public Offering (IPO). For this, the company has submitted its documents to the market regulator SEBI (Securities and Exchange Board of India).
The company had initially filed the documents confidentially in April 2025. Now, after receiving approval from SEBI in July, Tata Capital has submitted the updated DRHP (Draft Red Herring Prospectus). The company plans to raise approximately $2 billion, or about ₹16,800 crore, from the stock market.
Number of Shares to be Issued, Who Will Sell
A total of 47.58 crore shares will be offered in this public issue of Tata Capital. Out of these, 21 crore will be new equity shares issued by the company itself. In addition, 26.58 crore shares will be sold under the Offer for Sale (OFS).
Through OFS, Tata Sons will sell 23 crore shares from its stake. Simultaneously, the International Finance Corporation (IFC) will also offload 3.58 crore shares in the market. Overall, a significant portion of the company is now going to be available for retail investors.
Company Valuation and IPO Size
According to sources, Tata Capital's valuation through this issue could reach around $11 billion, or ₹92,400 crore. If everything goes according to plan, it will emerge as one of the largest financial entities of the Tata Group. With this issue of ₹16,800 crore, the company is preparing to establish a b presence in the market. This issue is likely to create a buzz among investors in the coming weeks, especially given the prevailing market volatility.
Tata Capital has clarified that it will use the capital raised from this IPO to enhance its Tier-1 capital. In light of the increasing competition in the NBFC sector, the company aims to strengthen its financial capabilities.
This fund will also increase the company's lending power, allowing it to attract more customers for small and large loans. Additionally, the company will also work on its business expansion plans.
Who are the Major Managers of this Issue?
To manage such a large issue, renowned investment banking companies from India and abroad have been brought on board. Kotak Mahindra Capital, Axis Capital, Citi, BNP Paribas, HDFC Bank, HSBC, ICICI Securities, IIFL, SBI Capital, and JP Morgan are among those managing Tata Capital's IPO.
Working with all these major financial companies, Tata Capital is leaving no stone unturned to make its issue successful.
What is Tata Capital's Business?
This Tata Group company is one of the leading non-banking finance companies in the country. Tata Capital provides services such as consumer loans, business financing, infrastructure finance, and wealth management.
Its primary focus has been on the retail loan, housing finance, and SME loan sectors. The company has demonstrated rapid growth in recent years and is now preparing to further elevate its business through the public issue.
What Will Be the Benefit to the Tata Group from the IPO?
The Tata Group already has a b presence in the stock market with its listed companies. However, the listing of Tata Capital will further strengthen this portfolio. This will further enhance investor confidence in the group and increase its influence in the NBFC sector.
Tata Sons is likely to receive a substantial amount through the OFS, which it can invest in its other business operations.
Increased Activity Among Investors
Since the IPO news, discussions among investors in the market have intensified. Although the stock market has been experiencing some declines recently, there is considerable enthusiasm for this issue, given the strength of the Tata brand.
Investors are viewing it as a safe and reliable investment option. The date when Tata Capital's IPO will open has not yet been announced, but preparations are in full swing.
The Tata Group is launching an IPO of one of its major companies after a long time. Prior to this, Tata Technologies launched an IPO in 2023, which received a tremendous response. Similarly, high expectations are being placed on Tata Capital's issue now.
