Non-banking financial company Tata Capital is preparing to launch its initial public offering (IPO) on October 6, with an estimated issue size of around USD 2 billion (approximately Rs 17,200 crore), according to sources familiar with the matter. The bidding period is set to open on Monday, October 6, 2025, and will conclude on Wednesday, October 8, 2025. Additionally, the anchor investor bidding will take place on Friday, October 3, 2025.
Tata Capital aims for a valuation close to USD 18 billion, as per insights from industry insiders.
The proposed IPO will involve 47.58 crore shares, consisting of a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares. Under the OFS, Tata Sons will divest 23 crore shares, while the International Finance Corporation (IFC) is set to sell 3.58 crore shares. Currently, Tata Sons holds an 88.6% stake in Tata Capital, with the IFC owning 1.8%.
The proceeds from the IPO are intended to enhance the company’s Tier-1 capital base, which will support its future capital needs, including funding for lending activities. Tata Capital, a subsidiary of the Tata Group, initially filed draft papers in April through the confidential pre-filing route and obtained approval from the Securities and Exchange Board of India (SEBI) in July.
If successful, this IPO will represent the largest public offering in India’s financial sector and will mark the Tata Group’s second major public listing in recent years, following the debut of Tata Technologies in November 2023. This move aligns with the Reserve Bank of India’s (RBI) mandate requiring upper-layer non-banking financial companies to be listed within three years of designation. Tata Capital was classified as an upper-layer NBFC in September 2022.
In a similar trend, HDB Financial Services, the non-banking arm of HDFC Bank, went public in June with a INR 12,500 crore issue, while Bajaj Housing Finance, also an upper-layer NBFC, experienced a remarkable debut with a 135% premium on its first trading day in September 2024.
For the financial year 2024-25, Tata Capital reported a profit after tax (PAT) of Rs 3,655 crore, an increase from Rs 3,327 crore in FY24. The company’s revenue also surged to Rs 28,313 crore in FY25, up from Rs 18,175 crore the previous year.
Since beginning lending operations in 2007, Tata Capital has served over 7 million customers as of March 31, and offers a diverse portfolio of more than 25 lending products. Its clientele includes salaried individuals, entrepreneurs, small and medium enterprises (SMEs), and large corporations. Beyond lending, Tata Capital provides third-party products like insurance and credit cards and offers wealth-management services, acting as a sponsor and investment manager for private equity funds.
The IPO is being managed by a consortium of book-running lead managers, including Axis Capital, Kotak Mahindra Capital Company, BNP Paribas, HDFC Bank, HSBC Securities and Capital Markets (India) Private Limited, Citigroup Global Markets India Private Limited, ICICI Securities, IIFL Capital Services, SBI Capital Markets, and J.P. Morgan India.
Published on September 27, 2025.
