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Tata Capital plans a USD 2 billion IPO in late September, with Tata Sons and International Finance Corporation selling stakes, marking the Tata Group’s second major listing.
Tata Capital IPO is expected to open in the last week of September.
Tata Capital IPO: The wait is finally over. Tata Capital, an NBFC, is set to launch its much-awaited USD 2 billion (Rs 17,200 crore) IPO in the last week of September, with a likely market debut on September 30, according to a report of PTI citing people familiar with the matter.
The proposed IPO of 47.58 crore shares comprises a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares, according to the updated draft red herring prospectus (DRHP) filed in August.
Under the OFS component, Tata Sons will offload 23 crore shares, while the International Finance Corporation (IFC) will divest 3.58 crore shares.
Currently, Tata Sons holds an 88.6 per cent stake in Tata Capital, while IFC owns 1.8 per cent holding, the PTI report said.
Proceeds from the IPO will be used to strengthen the company’s Tier-1 capital base, supporting future capital requirements, including onward lending.
If successful, this IPO will become the largest public issue in India’s financial sector. It will also mark the Tata Group’s second public listing in recent years, following the debut of Tata Technologies in November 2023.
Earlier, IPO-bound Tata Capital launched a series of institutional roadshows to engage both global and domestic investors.
Investor sentiment turned bullish amid optimism that the Tata Capital IPO could unlock value and strengthen the Tata Group’s presence in the listed financial services segment.
The move is in line with the Reserve Bank of India’s directive requiring all ‘upper layer’ non-banking financial companies (NBFCs) to go public by September 2025.
Tata Group’s financial services firm Tata Capital has reported strong financial performance ahead of the listing. In the March 2025 quarter, the company’s consolidated profit after tax (PAT) surged 31% year-on-year to Rs 1,000 crore, while revenue from operations jumped nearly 50% to Rs 7,478 crore. For the full FY25, PAT rose to Rs 3,655 crore from Rs 3,327 crore in FY24, and total revenues climbed to Rs 28,313 crore from Rs 18,175 crore.
In April 2025, Tata Capital filed draft papers with markets regulator Sebi to launch its initial public offering. The draft papers for the $2-billion IPO was filed through a confidential pre-filing route.
Tata Capital’s decision to opt for the confidential pre-filing route is part of a growing trend among Indian companies. This route allows companies to withhold public disclosure of details under the draft red herring prospectus (DRHP) until later stages.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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