Tata Capital's much-anticipated ₹17,000 crore IPO will open in the first week of October. The timeline was extended due to RBI approval. The company will issue 47.58 crore shares, including both fresh issues and OFS. The funds raised will be used to strengthen Tier-1 capital and for lending growth.
Tata Capital IPO: Tata Group's non-banking finance company, Tata Capital, is now set to launch its IPO worth approximately ₹17,000 crore in the first week of October. It was initially slated for listing by September 30, but the timeline has been extended with RBI's approval. The IPO will involve the issuance of 21 crore fresh equity shares and the sale of 26.58 crore shares through the OFS window, wherein Tata Sons and International Finance Corporation will reduce their stakes. The funds raised will be utilized by the company to enhance its capital base (Tier-1 capital) and for lending growth. In the June quarter, the company's profit doubled to ₹1,041 crore.
When the IPO Will Open
Initially, Tata Capital was scheduled to be listed on the domestic stock market by September 30. However, the Reserve Bank of India (RBI) granted an extension for the deadline. Now, the company will bring its IPO in the first week of October. Sources indicate that the RBI granted this extension due to technical and processing reasons.
Significant Jump in Valuation
Tata Capital's IPO is being launched at a valuation of approximately ₹18,000 crore. When the company filed its draft in April 2025, its valuation was only ₹11,000 crore. This signifies a substantial increase in the company's valuation within a few months. The company is now preparing to raise an amount exceeding approximately $200 million, or over ₹17,000 crore.
Reason for Extension from RBI
Under RBI regulations, Tata Capital was categorized as an upper-layer NBFC in September 2022. Companies falling into this category are mandated to list within three years. Therefore, the company was required to list by September 2025. However, large IPOs typically receive additional time. For instance, NSDL's IPO of ₹4,000 crore also received a four-month extension from SEBI.
Number of Shares to be Issued
As per the draft filed in August, a total of 47.58 crore shares will be issued under Tata Capital's IPO. Out of these, 21 crore will be fresh equity shares. While 26.58 crore shares will be sold through the Offer for Sale (OFS).
In this OFS, Tata Capital's promoter company, Tata Sons, will sell 23 crore shares. Meanwhile, International Finance Corporation (IFC) will offer 3.58 crore of its stake in the market. Currently, Tata Sons holds an 88.6% stake in the company, while IFC holds a 1.8% stake.
Utilization of Funds Raised
The funds raised from the IPO will be utilized for various purposes. The capital raised from the fresh shares will be used by Tata Capital to enhance its Tier-1 capital and accelerate lending growth. The amount received through the Offer for Sale will go to the investors selling their shares, namely Tata Sons and IFC.
Company's Business Health
Tata Capital's financial position currently appears to be very b. The company recently conducted roadshows in major financial hubs like Singapore, London, New York, and Hong Kong for investors. Large institutional investors from India and around the world participated in these roadshows.
The company demonstrated b performance in the first quarter of fiscal year 2026, i.e., April-June 2025. During this quarter, Tata Capital's net profit doubled from ₹472 crore to ₹1,041 crore. The company's total income also increased from ₹6,557 crore to ₹7,692 crore.
