Tata Capital Submits Updated DRHP for IPO Including Offer for Sale and Fresh Issue

Tata Group’s financial services arm, Tata Capital Ltd, has moved a step closer to its public listing by submitting a revised and updated Draft Red Herring Prospectus (DRHP) with SEBI. The IPO plan includes a fresh issue of shares and a significant offer for sale by existing shareholders, Tata Sons and the International Finance Corporation (IFC).

Tata Capital IPO Structure

Tata Capital’s proposed IPO will comprise both a fresh equity issue and a large offer for sale. According to the NDTV Profit report, Tata Sons is planning to divest 23 crore equity shares, while IFC will sell 3.58 crore shares. In addition, the company intends to raise capital through a primary issue of up to 21 crore new shares. This will not only enable fundraising for growth but also broaden its public shareholding in line with regulatory requirements.

Top NBFC by Scale and Rapid Growth Rates

As per the CRISIL Report, Tata Capital is ranked as India’s 3rd-largest diversified non-banking financial company by AUM.

With consolidated assets under management (AUM) of approximately ₹2,21,950 crore, including the merged entity with the erstwhile TMFL as of March 31, 2025, TCL maintains a well-diversified loan book across retail, SME, and corporate segments. 

As of 31 December 2024, the total consolidated loan book stood at around ₹1,89,700 crore. Within this, home loans accounted for roughly 19%, loans against property 14%, personal loans 8%, business loans 5%, and vehicle loans, including commercial vehicles, two-wheelers, and passenger cars, around 10%. 

The group also extends credit through loans against securities, leasing, equipment finance, and more. Its SME and corporate portfolios include a mix of term loans, supply chain finance, developer finance, cleantech lending, and other specialised offerings.

Read More: Tata Sons to Invest $400 Million in Tata Digital to Revive Its Struggling E-Commerce Business!

Tata Capital Performance & Earnings

Tata Capital, the financial services arm of the Tata Group, has delivered a strong financial performance ahead of its upcoming listing. In the March 2025 quarter, the company's consolidated profit after tax (PAT) rose by 31% year-on-year to ₹1,000 crore, while revenue from operations increased by nearly 50% to ₹7,478 crore. 

For the full fiscal year FY25, PAT grew to ₹3,655 crore, up from ₹3,327 crore in FY24, and total revenue surged to ₹28,313 crore from ₹18,175 crore.

Lead Managers and Regulatory Processes

The book running lead managers for this IPO are Kotak Mahindra Capital, Axis Capital, BNP Paribas, Citigroup Global Markets India, and HDFC Bank. MUFG Intime India Private Ltd has been appointed as the registrar. The pre-filing process, a relatively new option under SEBI norms, allows issuers to maintain confidentiality before proceeding to public filing.

Conclusion

Tata Capital’s updated IPO filing with SEBI marks a significant move towards its public debut, combining capital infusion with strategic stake reduction by major shareholders. With a strong retail and SME loan focus, secured portfolio, and rapid growth, the IPO positions Tata Capital for enhanced market visibility and expansion.

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