Tata Capital IPO to raise ₹16,500–17,500 Crore in October; Tata Sons’ stake to fall to 86.5%

Tata Capital, one of the most-awaited IPOs of 2025, is likely to open in the first half of October. The issue will raise between ₹16,500 crore and ₹17,500 crore, making it one of the largest offerings in the financial sector. The funds will support growth for the next 2 to 3 years.

Delay and Merger Approval

The IPO was initially expected in September but got delayed due to the merger approval of Tata Motors Finance by the National Company Law Tribunal (NCLT) in May. Following the merger, Tata Capital’s credit cost rose to 1.4%, up from 0.9% earlier.

Company Profile and Growth

Tata Capital is the third-largest NBFC in India and is classified as an upper-layer NBFC by the RBI. As of March 31, 2025, it had assets under management (AUM) of about ₹2.2 trillion, growing at an average of 28% over the past 3 years. Its loan portfolio is well-diversified across retail, SMEs, and corporates.

Subsidiaries and Operations

The mortgage business is handled through Tata Capital Housing Finance, which had a portfolio of ₹66,402 crore as of March 31, 2025. Housing loans formed 58% of this 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. Roadshows for the IPO have already received strong investor interest globally.

Also Read: Upcoming IPOs This Week: 11 Mainboard and 17 SME IPOs Set to Open Starting September 22!

Shareholding and Offer Details

Currently, Tata Sons owns 92.83% of Tata Capital, and the Tata group overall holds 95.6%. Post-IPO, this stake will reduce to 86.5%. International Finance Corporation (IFC), which owns 1.7%, will sell half its stake.

The IPO will consist of 47.58 crore shares, including a fresh issue of 21 crore shares and an offer for sale of 26.58 crore shares. Tata Sons will sell 23 crore shares, while IFC will sell 3.58 crore shares.

Conclusion

Tata Capital’s IPO marks a major milestone for the Tata group’s financial services arm. With strong growth, a diversified portfolio, and rising profitability, the IPO is expected to attract wide investor interest and strengthen the company’s capital base for future expansion.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.