Mumbai: The Tata Group’s financial services arm, Tata Capital, is all set to launch its IPO by the end of September. Currently, the Tata Group’s holding company Tata Sons holds a 88.6% stake in the company, while the World Bank-supported International Finance Corporation (IFC) holds 1.8% in the company.
According to the updated draft red herring prospectus (DHRP), Tata Sons is expected to sell 23 crore shares in the company while the IFC will divest 3.58 crore shares through the Offer For Sale (OFS) component in the issue. Besides this, 21 crore fresh equity shares will also be issued in the IPO.
Tata Capital aims to use the proceeds to meet future funding requirements, mostly for onward lending.
This one remains a highly anticipated IPO, considering Tata Capital’s strong balance sheet with its profit after tax (PAT) growth of 16% from Rs.3,150 crore in FY24 to Rs.3.665 crore in FY25. The company’s loan book has grown by 37 percent between FY23 and FY25. As on March 2025, the company’s gross loans were worth Rs.2.26 lakh crore.
This IPO will make this the largest public issue in India’s financial sector. This is in-line with the RBI’s updated mandate requiring upper-layer NBFCs like Tata Capital to list within three years of classification.
Bajaj Housing Finance and HDB Financial Services- the non-banking arm of HDFC Bank- other upper-layer NBFCs- have already complied with this mandate with listings this year. This IPO is the second one from the Tata Group in recent years, after Tata Technologies made its market debut in 2023.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
