Get ready! Tata Capital's much-anticipated IPO, worth Rs 17,200 crore, is set to launch in late September. This move will significantly boost the company's
financial standing.
IPO: The Details
The Tata Capital IPO, valued at USD 2 billion (Rs 17,200 crore), is expected to launch in the last week of September, potentially debuting on September 30. The company filed draft papers in April 2025 via a confidential pre-filing route. The IPO will comprise a fresh issue of 21 crore shares and an offer for sale (OFS) of 26.58 crore shares, totaling 47.58 crore shares.
Stakeholders' Involvement
Tata Sons currently holds an 88.6% stake in Tata Capital, while the International Finance Corporation (IFC) owns 1.8%. Under the OFS component, Tata Sons will offload 23 crore shares, and IFC will divest 3.58 crore shares. This is a strategic move to unlock value, with investor sentiment bullish after roadshows to engage global and domestic investors.
Financial Performance Boost
Tata Capital's financial performance has been impressive. In the March 2025 quarter, the company’s consolidated profit after tax (PAT) jumped 31% to Rs 1,000 crore. Revenue from operations surged nearly 50% to Rs 7,478 crore. For 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.
Capital and Compliance
Proceeds from the IPO will fortify Tata Capital’s Tier-1 capital base. This will support future capital needs, including lending. The listing aligns with the Reserve Bank of India's directive for upper-layer NBFCs to go public by September 2025. This IPO follows the successful debut of Tata Technologies in November 2023, showing the Group's strength.
