Tata Capital is set to launch its IPO with 47.58 crore shares in the fourth week of September, comprising 21 crore in fresh equity and 26.58 crore through an Offer for Sale (OFS). The company's valuation is expected to reach approximately $11 billion. The funds raised from the IPO will be utilized to strengthen its Tier-1 capital and meet future capital requirements.
Tata Capital IPO: Non-banking financial company Tata Capital is preparing to enter the stock market in the fourth week of September 2025. The company's IPO will involve 47.58 crore shares, with Tata Sons selling 23 crore and IFC selling 3.58 crore shares, while 21 crore shares will be issued as fresh equity. The objective of this listing is to bolster the company's Tier-1 capital and comply with RBI guidelines, which mandate that Upper Layer NBFCs must be listed within three years. According to experts, this issue could see the company's valuation reach around $11 billion.
Number of Shares to be Issued
As per the updated Draft Red Herring Prospectus filed in August, Tata Capital will offer a total of 47.58 crore shares in this IPO. Of these, 21 crore will be fresh equity shares. Additionally, 26.58 crore shares will be sold by existing investors through an Offer for Sale. Information indicates that Tata Sons will sell 23 crore shares in this issue, while the International Finance Corporation (IFC) will offload its 3.58 crore share stake in the market. Currently, Tata Sons holds approximately 88.6% stake in Tata Capital, while IFC owns 1.8% shares.
When the IPO Will Launch
According to market information, Tata Capital's IPO is expected to open for investors in the week commencing September 22. It is estimated that the company's shares will be listed on the stock market by September 30. Experts suggest that the company's valuation could reach approximately $11 billion through this IPO.
Why Listing on the Stock Market is Necessary
Tata Capital's listing is crucial not only for fundraising but also for regulatory reasons. In 2022, the Reserve Bank categorized the company as an Upper Layer NBFC. Companies falling into this category are mandated to list on the stock market within three years. It is due to this regulation that Tata Capital is bringing its IPO.
Utilization of Funds Raised from IPO
The company has clarified that the funds raised from the IPO will be used to strengthen its Tier-1 capital base. Furthermore, it will be utilized to meet future capital requirements, primarily including enhancing its lending capacity.
Largest Public Issue to Date
If everything proceeds as planned, Tata Capital's IPO could become the largest public issue in the country's financial sector. This will not only provide investors with an opportunity to invest in a major brand but also facilitate easier capital raising for the company from the market.
Company's Recent Performance
Tata Capital presented b results in the June quarter of the fiscal year 2025-26. The company reported a net profit of ₹1,041 crore, more than double the same period last year. During the same period, the company's total income increased from ₹6,557 crore to ₹7,692 crore. These figures clearly indicate the company's fast-paced growth and its continuous business expansion.
Company's Journey and Business
Tata Capital was established in 2007. Since its inception, the company has served over 7 million customers. The company's business is quite diverse. It offers insurance and credit card facilities, as well as sponsors private equity funds. Additionally, it provides wealth management services. Through all these services, the company has established itself as a trusted brand among its customers.
