Tata Capital to launch ₹17,200 crore IPO from October 6; Tata Sons and IFC to divest shares

Tata Capital, the non-banking financial arm of the Tata Group, is set to open its initial public offering (IPO) for public subscription on October 6, 2025, closing on October 8. The anchor investor bidding will take place on October 3. The issue size is estimated at $2 billion (around ₹17,200 crore), with the company targeting a valuation of roughly $18 billion.The 47.58 crore-share IPO comprises 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 sell 23 crore shares, while the International Finance Corporation (IFC) will divest 3.58 crore shares. Tata Sons currently holds 88.6% of Tata Capital, and IFC owns 1.8%.

Proceeds from the IPO will strengthen Tata Capital’s Tier-1 capital base to support future lending and business growth. The IPO follows SEBI approval in July, after the company filed draft papers through the confidential pre-filing route in April.

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If successful, the offering will be the largest public issue in India’s financial sector and the second Tata Group listing in recent years, following Tata Technologies’ debut in November 2023. The IPO also fulfils the Reserve Bank of India’s mandate requiring upper-layer NBFCs to list within three years of classification; Tata Capital was designated an upper-layer NBFC in September 2022.

For FY25, Tata Capital posted a profit after tax of ₹3,655 crore, up from ₹3,327 crore in FY24, while revenue rose to ₹28,313 crore from ₹18,175 crore. Since starting lending in 2007, the company has served over 70 lakh customers through more than 25 lending products and offers services including third-party insurance and credit card distribution, wealth management, and private equity fund management.

The IPO is being managed by a consortium of book-running lead managers, including Axis Capital, Kotak Mahindra Capital, BNP Paribas, HDFC Bank, HSBC Securities and Capital Markets, Citigroup Global Markets India, ICICI Securities, IIFL Capital, SBI Capital Markets, and J P Morgan India.

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