Tata Capital IPO: Tata Group Firm Targets $2 Billion Public Offer in October

According to a Bloomberg report, the Tata Group’s financial services arm, Tata Capital, is poised to launch a major initial public offering (IPO) in October 2025, aiming to raise $2 billion. This IPO is set to become one of the largest in recent Indian stock market history, complying with regulatory requirements while supporting business expansion.

$2 billion IPO to Hit Markets in October

Tata Capital is reportedly preparing to roll out its $2 billion IPO in the first half of October. The offering will comprise a fresh issue of up to 21 crore equity shares and an offer for sale (OFS) of up to 26.58 crore shares, totalling 47.58 crore shares. The company is targeting a valuation of around $18 billion, positioning this IPO as the largest since Hyundai Motor India’s $3.3 billion issue last year.

Key Players in the Offer for Sale

In the OFS portion, promoter Tata Sons plans to sell up to 23 crore shares, while International Finance Corporation (IFC) will offload up to 3.58 crore shares. As of now, Tata Sons holds an 88.6% stake in Tata Capital, and IFC owns 1.8%. The share sale is expected to reshape the ownership structure and enhance the company’s public profile.

Reason Behind the IPO Launch

The IPO is driven by a directive from the Reserve Bank of India (RBI), which requires large non-banking financial companies (NBFCs) to list by September 2025. Tata Capital was classified as an upper-layer NBFC by the RBI in September 2022, necessitating compliance with the listing requirement.

Read More: SEBI to Expedite IPO Approvals and Ease Regulations: Report!

Use of Proceeds and Financial Performance

Funds raised through the fresh issue will be used to strengthen Tier-I capital and support future lending growth. The company has shown strong financial results, with a net profit of ₹1,041 crore in Q1 FY26, more than doubling from ₹472 crore in the same quarter the previous year.

Conclusion

Tata Capital’s planned IPO marks a significant milestone for the Tata Group, aligning with regulatory requirements while unlocking value for existing shareholders. With robust market interest and impressive financials, this public offering is set to draw considerable investor attention.

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