Tata Capital is set to launch its $2 billion IPO in October after receiving an extension from the RBI to list its shares.
IFC plans to sell 3.58 crore shares during the IPO, partially exiting an early investment in Tata Capital’s cleantech operations from 2011, according to the revised draft red herring prospectus (DRHP).
Tata Capital is expected to launch its $2 billion IPO in the first half of October after the Reserve Bank of India (RBI) extended the deadline for the company to list its shares on stock exchanges, sources revealed.
Previously, the non-banking finance firm had until September 30 to complete its listing.
In 2011, IFC teamed up with Tata Capital to establish Tata Cleantech Capital Ltd (TCCL), aimed at financing sustainable and renewable infrastructure projects. At that time, the clean energy sector in India was still largely dependent on subsidies.
Over the last decade, TCCL has grown to be a significant green financier, supporting over 500 renewable energy projects spanning solar, wind, biomass, small hydro, water treatment, and electric mobility.
Moreover, the company has approved more than 22,400 MW of clean energy capacity, creating one of the most extensive cleantech portfolios in the country. By FY25, the cleantech and infrastructure finance loan portfolio is projected to exceed ₹18,000 crore, growing at a compound annual growth rate (CAGR) of nearly 32% over the past two years, as per the draft documents.
Following TCCL’s merger with Tata Capital, IFC currently holds 7.16 crore shares, roughly 1.8% of the parent NBFC. The organization intends to divest 3.58 crore shares during the upcoming IPO.
IFC entered the investment at an adjusted rate of around ₹25 per share, which valued its total investment at approximately ₹179 crore. With the rights issue priced at ₹343 per share, this stake has inflated to nearly ₹2,458 crore, offering a notional profit of around ₹2,278 crore. This investment in Tata Capital has proven to be highly profitable for IFC, yielding nearly a thirteen-fold return.
The anticipated gains are calculated based on the rights issue valuation. The IPO price is expected to surpass this, potentially enhancing IFC’s returns further, according to sources.
In July, Tata Capital secured ₹1,752 crore through a rights issue set at ₹343 per share.
The forthcoming IPO will consist of a fresh issue of up to 21 crore shares, alongside an offer for sale (OFS) of up to 26.58 crore shares, which includes 23 crore shares from the promoter Tata Sons and 3.58 crore shares from IFC, according to the updated draft documents filed in August.
Promoter Tata Sons retains an 88.6% stake in Tata Capital.
Funds from the fresh issue will be allocated to bolster Tier-I capital and support lending expansion.
If successful, this IPO will mark the largest public offering in India’s financial sector to date. It will also indicate the Tata Group’s second public listing in recent years, following Tata Technologies’ launch in November 2023.
This IPO aligns with the RBI’s listing requirements for upper-layer NBFCs, mandating that they list within three years of their classification. Tata Capital was designated as an upper-layer NBFC in September 2022.
Published on September 14, 2025
