Tata Capital Likely Gets SEBI Nod for Confidential $2 Billion IPO

Tata Capital has received clearance from the Securities and Exchange Board of India (SEBI) for its confidential draft red herring prospectus (DRHP), as per NDTV Profit reports. The financial services firm, a subsidiary of the Tata Group, is now expected to publicly refile updated documents before proceeding with the initial public offering (IPO).

Structure of the Offer

The IPO is expected to include a fresh issue of 23 crore equity shares along with an offer-for-sale by existing shareholders, including Tata Sons, which holds a 93% stake in the company. The confidential DRHP was originally submitted in April 2025.

Timeline and Regulatory Requirement

According to Economic Times reports, Tata Capital may file its red herring prospectus in the first week of July, 2025. The listing is required to be completed by September 2025, in line with Reserve Bank of India (RBI) regulations for upper-layer non-banking financial companies (NBFCs). Tata Capital was included in this category by the RBI in January 2024.

Background and Pre-IPO Activity

Tata Capital had been preparing for this public listing following the National Company Law Tribunal’s nod for its merger with Tata Motors Finance. Ahead of the planned IPO, the company raised ₹1,500 crore via a rights issue in February. Tata Sons subscribed fully to its shares, with smaller shareholders such as the International Finance Corporation also participating. The funds were intended for lending and strengthening capital adequacy.

Read more: Tata Sons Board to Review FY25 Results and Tata Capital IPO Plans!

Tata Capital Financial Performance

For Fiscal 2025, the company posted a net profit of ₹3,655 crore, up from ₹3,327 crore the previous year. Total revenue rose to ₹28,313 crore from ₹18,175 crore. In the March quarter the consolidated net profit increased by 31% year-on-year to ₹1,000 crore, while operational revenue stood at ₹7,478 crore.

Conclusion

With SEBI's approval in place, Tata Capital’s public listing process is underway. If completed, it will become the 17th listed Tata Group company.

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