Tata Capital Mulls Rights Issue Ahead of $2 Billion IPO

Tata Capital Ltd will hold a board meeting on Thursday to consider raising funds through a rights issue and the issuance of non-convertible debentures (NCDs) via private placement, as per the reports. The details of the proposed rights issue, including size and pricing, were not disclosed in the company’s stock exchange filing.

Previous Capital Raise

In March 2025, the company raised ₹1,500 crore through a rights issue. Tata Sons, which holds 93% of Tata Capital, subscribed to its full entitlement, contributing ₹1,400 crore. The remaining stake is held by Tata Investment Corporation, TCL Employee Welfare Trust, and other minority shareholders.

IPO Filing and SEBI Approval

Tata Capital had confidentially filed draft IPO papers with SEBI in April 2025. The proposal, expected to be around $2 billion, includes a fresh issue of 23 crore equity shares and an offer for sale by existing shareholders. According to NDTV Profit reports, SEBI has likely cleared the proposal, and the company is expected to file updated documents publicly.

Read more: Tata Capital Likely Gets SEBI Nod for Confidential $2 Billion IPO!

Public Listing Timeline

The IPO is planned to take place before September 2025. This timeline aligns with the Reserve Bank of India’s mandate requiring upper-layer non-banking financial companies (NBFCs) to be listed within the deadline. Tata Capital received board and shareholder approval for the listing after the National Company Law Tribunal cleared its merger with Tata Motors Finance.

Tata Capital Financial Performance

Tata Capital reported a consolidated profit after tax of ₹3,655 crore in FY25, compared to ₹3,327 crore in FY24. The company’s total asset base rose to ₹2,48,465 crore in FY25, up from ₹1,76,694 crore in the previous year. 

Conclusion

Tata Capital is moving ahead with its funding plans and IPO preparations. The rights issue and proposed NCDs come ahead of its expected public listing before the September deadline for upper-layer NBFCs.

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