Tata Capital IPO: A Comparative Analysis with IIFL Finance, Muthoot Finance and Other Peers

Tata Capital Ltd (TCL), the financial services arm of the prestigious Tata Sons, is gearing up for what could be India’s largest IPO this year. The company has secured approval from the market regulator, Securities and Exchange Board of India (SEBI) to list its shares. Tata Capital aims to raise up to $2 billion from investors during this public offering.

Tata Capital is a flagship financial services company under Tata Sons Private Limited, part of the iconic Tata Group conglomerate. With its strong brand heritage and diversified financial offerings, TCL has become a major player in the Indian financial ecosystem.

How Does Tata Capital Stack Up Against Competitors?

To understand Tata Capital’s positioning in the financial services sector, here’s a comparative snapshot of its recent financials alongside key competitors:

Note: The above-mentioned numbers are as of March 31, 2025.

While Aditya Birla Capital leads in revenue, Tata Capital’s profitability and growth trajectory are commendable, especially when compared to established names like Muthoot Finance and Mahindra Finance.

Strategic Acquisition of Tata Motors Finance Limited

In a significant development, Tata Capital’s Board of Directors approved a Scheme of Arrangement for the merger of Tata Motors Finance Limited (TMFL) with Tata Capital. The merger was finalised with the approval of the National Company Law Tribunal (NCLT) on May 8, 2025. This merger is expected to strengthen Tata Capital’s balance sheet and expand its footprint across various lending segments.

Strong Financial Growth: Tata Capital’s Performance in 1HFY25

Tata Capital has demonstrated robust growth in the first half of FY25, reporting a 33% year-on-year increase in its loan book, rising to ₹1,76,536 crore from ₹1,32,470 crore. Disbursals also surged 40% year-on-year, reaching ₹62,289 crore compared to ₹44,618 crore in the same period last year. These impressive numbers highlight Tata Capital’s growing market presence and increasing investor confidence ahead of its IPO.

Also Read: Tata Capital Mulls Rights Issue Ahead of $2 Billion IPO

Conclusion

With its strong backing from the Tata Group, strategic mergers, and impressive financial growth, Tata Capital is well-positioned to become a formidable force in India’s financial services landscape. Investors keen on tapping into this growing sector should keep a close eye on Tata Capital’s upcoming IPO.

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. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.