Tata Capital Plans $2 Billion IPO in September, Targets $11 Billion Valuation

Tata Capital is set to launch its $2 billion initial public offering (IPO) in the week of September 22, 2025, aiming for a valuation of around $11 billion, as per news reports. This strategic move marks the Tata Group’s second market debut in recent years, following Tata Technologies’ listing in 2023.

Details of Tata Capital’s Highly Anticipated IPO

As per the PTI report, the IPO comprises 47.58 crore equity shares, including 21 crore fresh shares and 26.58 crore through an offer-for-sale by existing shareholders. Tata Sons will offload 23 crore shares, while the International Finance Corporation (IFC), which currently holds 1.8% in the company, will sell 3.58 crore shares. Tata Sons, the parent group, owns 88.6% of Tata Capital as of now.

Purpose Behind the Public Issue

Proceeds from the IPO will be primarily used to enhance Tata Capital’s Tier-1 capital base, strengthening its financial foundation for future lending operations. The offering is in line with the Reserve Bank of India's regulatory requirement mandating major non-banking financial companies classified in the upper layer to go public within 3 years.

Tata Capital Financial Performance

Tata Capital has shown strong financial performance with its gross loan book reaching ₹2,26,000 crore as of March 2025. This implies a compound annual growth rate (CAGR) of 37% between FY23 and FY25. Meanwhile, the profit after tax surged to ₹3,646.6 crore in FY25 compared to ₹3,029.2 crore in FY23, showing a steady income trajectory and profitability.

Read More: Groww Secures SEBI Nod for IPO: Plans to Raise Up to $1 Billion!

Asset Quality and Market Position

Tata Capital maintained a stable asset quality with gross non-performing assets at 1.9% and net NPAs at 0.8%. The company recorded a net profit of ₹1,041 crore in Q1 FY26, a more than 2x increase from the year-ago period. Total income rose to ₹7,692 crore from ₹6,557 crore during the same time.

About Tata Capital

Founded in 2007, Tata Capital serves over 70,00,000 customers across retail and institutional segments. The firm offers services ranging from loans, wealth management and insurance distribution to managing private equity funds. The IPO, the largest ever in India’s financial services sector, is expected to reshape the NBFC landscape.

Conclusion

Tata Capital’s upcoming IPO underscores its growth strength and intent to meet regulatory goals while expanding lending capabilities. With a robust financial track record and strategic backing of Tata Sons, the public issue is poised to create new benchmarks in India’s financial sector.

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