Mumbai: Indian market regulator Securities Exchange Board of India (SEBI) has approved Tata Capital’s Rs.17,200 cr Draft Red Herring Prospectus (DHRP) that was filed confidentially in April this year. This makes it one of the largest IPOs in the financial services space this year, especially as HDB Financial Services and Hero FinCorp have their IPOs scheduled for June and July this year.
Tata Capital has had to list on the bourses due to Reserve Bank of India’s (RBI) framework which classifies the company as an ‘upper layer’ NBFC required to list by September 2025. This classification will force the company to meet stricter RBI regulations.
As per reports, the IPO is expected to open later this year, it will offer 2.3 crore equity shares with a combination of a fresh issue and Offer For Sale (OFS) by existing shareholders.
In an announcement to the bourses, Tata Capital said:
“The company has filed the Pre-filed Draft Red Herring Prospectus dated April 5, 2025, under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, with Sebi, BSE, and NSE in connection with its Initial Public Offering of equity shares of face value of Rs 10 each.”
Tata Sons currently holds 93% of the company’s equity. Tata Capital is the 17th Tata Group company to list on the bourses.
In Q4 FY25, the company offered a consolidated net profit of Rs.1,000 crore, an increase of 31% from Rs.765 crore in the same quarter last year. Correspondingly, the company’s operating revenue also increased 50% to Rs.7,478 crore from Rs.4,998 crore last year.
Tata Capital is India’s third-largest NBFC with its asset under management crossing Rs.1.5 lakh crore, offering SME financing, home loans, infrastructure funding and other related services. Over 85% of its loan book is in the retail and MSME sectors.
