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Tata Capital will have the biggest issue of IPO 2025.
Tata Group’s financial services company Tata Capital is preparing to bring its IPO. The company has filed its red hering prospectus (RHP) near SEBI and Stock Exchange on 26 September. Tata Capital is planning to raise about Rs 16,400 crore (about $ 1.85 billion) through this IPO. This will be the biggest issue of 2025.
The company will sell 47.58 crore shares in the issue. Which includes a sales (offer for cell) of 26.5 crore shares of shareholders like Tata Sons and International Finance Corporation (IFC) (IFC). The company’s post-money equity valuration is expected to remain $ 16.5 billion (about 1.46 lakh crore rupees).
Tata Capital IPO will open on 6 October
The IPO will open on 6 October 2025 and will close on 8 October 2025. The bid for the anchor investors will be on 3 October. In this issue, LIC, the country’s largest insurance company, is also preparing to place big bets.
The company filed updated draft Red Herring Prospects (DRHP) i.e. draft papers for IPO on August 4 with the Market Regulator Securities and Exchange Board of India (SEBI).
The company did a confidantial pre-filing
The company filed draft papers near SEBI for IPO 5 months ago. According to media reports, SEBI had a pre-filing conferencing for the IPO of Tata Capital Financial Services Limited.
The Confidential Pre-Filing route was introduced by SEBI in November 2022. Under this, companies help in filing their DRHP without making their necessary business details public.
Tata Sons’s 93% stake in Tata Capital
Tata Sons is the holding company of Tata Capital. It holds around 93% stake in Tata Capital. The rest of the Tata Group has other companies and trusts. Tata Capital has the status of Additional layer NBFC (Non Banking Financial Company) from Reserve Bank of India (RBI).
10 investment banks appointed for listing
Tata Capital appointed 10 investment banks as consultants for listing. These banks include Kotak Mahindra Capital, City, JP Morgan, Axis Capital, ICICI Securities, HSBC Securities, IIFL Capital, BNP Paribas, SBI Capital and HDFC Bank.
Company joined NBFC in September 2022
According to the rules of the Reserve Bank of India (RBI), a large NBFC like Tata Capital was required to be listed in the stock exchange by 30 September. However, the company has recently got a little more time from RBI.
According to the RBI order, it is necessary for the upper layer NBFC to list the stock markets within 3 years of getting this recognition. Tata Capital qualified at the Upper Layer NBFC in September 2022. That is, under the RBI rule, Tata Capital has a time till September 2025 to list itself in the stock market.
Board approval for IPO was received in February
Tata Capital received its board approval for IPO in February. Prior to IPO, the board also approved the rights issue of ₹ 1,504 crore in February. This will be the first IPO of a Tata Group company after the listing of Tata Technologies in 2023.
The company’s AUM was 1.58 lakh crore rupees (till 31 March 2024). Personal loans, home loans, loans for vehicles, loans for commercial vehicles and business loans. Apart from this, it also provides credit cards and digital loans.
Great growth in financials before IPO
Tata Capital has recorded great growth in its financial performance before IPO. In March 2025 quarter, the company’s net profit increased by Rs 31% to Rs 1,000 crore as compared to Rs 765 crore in the same quarter last year. During the same period, the company’s operation increased by Rs 4,998 crore to Rs 50% to Rs 7,478 crore.
In the financial year 2024-25, the company’s total net profit increased from Rs 3,327 crore to Rs 3,655 crore on an annual basis. At the same time, the total revenue of the company increased from Rs 18,175 crore to Rs 28,313 crore.
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