Tata Capital, the financial services arm of the salt-to-software conglomerate Tata Group, has filed a Draft Red Herring Prospectus (DRHP) with SEBI to launch
an Initial Public Offering (IPO) estimated at ₹17,200 crore. The move comes as part of its compliance with the Reserve Bank of India’s mandate requiring all "upper layer" non-banking financial companies (NBFCs) to be listed by September 2025. The offering comprises a fresh issue of 210 million shares, with existing shareholders, including Tata Sons and the International Finance Corporation (IFC), the World Bank’s investment arm, offloading up to 265.8 million shares via an offer for sale. Of the stake being sold, Tata Sons, holding an 88.6 per cent stake, will divest 230 million shares, while IFC will offload approximately 35.82 million shares, nearly half of its 1.80 per cent stake in Tata Capital. Post-issue equity dilution from the fresh issue is expected to be under 1 per cent. According to the DRHP, proceeds from the fresh issue will be utilised to augment Tata Capital’s capital base, fund lending growth, and cover issue-related expenses. “Unless the regulator has some specific comments, it is fair to assume that the IPO will be ready to go in three weeks since all other regulatory doubts have been already cleared,” said a person familiar with the matter, as quoted in The Economic Times. This IPO will rank among the largest in India's financial sector history, placing Tata Capital firmly on the map as it seeks to capitalise on the sector’s ongoing credit boom. The company recorded a net profit of ₹3,665 crore in FY25, up 16 per cent from the ₹3,150 crore reported in FY24. Its loan book stood at ₹2.2 lakh crore as of March 2025, with 62 per cent of loans extended to individuals. The move is also in line with Tata Group's broader ambitions to unlock value across its subsidiaries through public listings, further evidenced by the recent IPOs of Tata Technologies and Tata Play.
