StartupTalky

Tag: Tata Capital IPO

  • Tata Capital Set to Launch 2025’s Biggest IPO from October 6-8: All You Need to Know

    The Tata Group’s premier financial services company, Tata Capital, moved one step closer to its massive initial public offering (IPO) on September 26 when it submitted its red herring prospectus to the bourses and Sebi.

    According to an exchange disclosure, the offer includes a new issue of up to 210,000,000 equity shares with a face value of INR 10 apiece as well as an offer for sale of up to 265,824,280 equity shares by specific company selling shareholders. Additionally, the disclosure stated that the offer or bid will open on October 6, 2025, and finish on October 8, 2025. October 3, 2025, will be the day of the anchor investor bidding.

    Tata Group Aiming for Post-Money Equity Valuation of $16.5 Bn

    Media reports also stated that the combined IPO size (new issue of shares plus OFS by Tata Sons and IFC, or International Finance Corporation) is estimated to be around $1.85 billion, or INR 16,400 crore, with the Tata Group aiming for a post-money equity valuation of approximately $16.5 billion for the big-bang IPO.

     According to the source, insurance behemoth LIC is probably going to place a large wager on this matter, with the anchor segment probably taking place on October 3 and the issue preparing to launch between October 6 and October 8.

    The vast majority of Tata Capital is owned by Tata Sons. According to the draft paperwork, the remaining interest is held by external investors IFC and other group firms, including TMF Holdings Ltd, Tata Investment Corporation, Tata Motors, Tata Chemicals, Tata Power, and others.

    RBI Norm that Needs to be Followed by Tata Capital

    Upper-layer NBFCs like Tata Capital are required by Reserve Bank regulations to list on domestic bourses by September 30. However, the company just obtained a small extension from the banking regulator, according to sources.

    Moneycontrol was the first to announce on April 5 that Tata Capital has submitted draft documents for an IPO of over INR 15,000 crore to SEBI under the private pre-filing process. Numerous media outlets also stated earlier on March 21 that the top NBCF had hired ten investment banks to serve as consultants for the massive listing and was probably going to use the confident pre-filing approach.

    According to the reports, the following companies were involved: Kotak Mahindra Capital, Citi, Axis Capital, JP Morgan, HSBC Securities, ICICI Securities, IIFL Capital, BNP Paribas, SBI Capital, and HDFC Bank.

    Quick
    Shots

    •Tata Group aims for a post-money
    equity valuation of ~$16.5 billion.

    •New issue of 210 million shares and
    OFS of 265.82 million shares by Tata Sons and IFC.

    •Life Insurance Corporation expected
    to be a major anchor investor.

    •Majority held by Tata Sons, with
    stakes from IFC and group companies like Tata Motors, Tata Power, Tata Chemicals,
    etc.

  • Tata Capital Plans $2 Bn IPO in Last Week of September, Aims for $11 Bn Valuation

    According to various media reports, Tata Capital, a non-banking financial company (NBFC), is scheduled to commence its much-awaited $2 billion (INR 17,200 crore) IPO the week of September 22. Reports said that the corporation is anticipated to be worth approximately $11 billion as a result of the issue.

    Tata Capital IPO Date & Expected Valuation

    By September 30th, Tata Capital is probably going to launch on the stock market. According to the revised draft red herring prospectus (DRHP) submitted in August, the planned IPO of 47.58 crore shares consists of an offer for sale (OFS) of 26.58 crore shares and a new issue of 21 crore equity shares.

    Tata Sons will sell 23 crore shares under the OFS component, and the International Finance Corporation (IFC) will sell 3.58 crore shares. At the moment, IFC owns 1.8% of Tata Capital, while Tata Sons controls 88.6%.

    How Tata Capital Will Use IPO Proceeds?                                   

    In order to meet future capital needs, such as further lending, the company’s Tier-1 capital base will be strengthened with the help of the IPO proceeds. This IPO will grow to be the biggest public offering in the Indian financial industry if it is successful.

    In addition, it will be the second public listing of the Tata Group in recent years, after Tata Technologies’ November 2023 debut. The IPO is being conducted in accordance with the listing mandate of the Reserve Bank of India (RBI), which stipulates that upper-layer NBFCs must be listed within three years of their categorisation. In September 2022, Tata Capital received its designation as an upper-layer NBFC.

    Comparison with Other NBFC IPOs (HDB, Bajaj Housing Finance)

    Similar to this, HDB Financial Services, HDFC Bank’s non-banking division, went public in June with an INR 12,500 crore offering. In September 2024, another upper-layer NBFC, Bajaj Housing Finance, made a spectacular market debut by completing the first day of trading at a 135% premium over the issue price.

    Experts’ Review: Should You Invest in Tata Capital IPO?

    According to market experts, IPO investors can feel confident in Tata Capital’s capacity to maintain performance because of its steady asset quality, increasing and diverse loan book, strong domestic ratings, and seasoned leadership. With total gross loans of INR 2.26 lakh crore as of March 2025—a compound annual growth rate of 37% during FY23 and FY25—Tata Capital has demonstrated steady performance.

    With a compound annual growth rate (CAGR) of 10%, its profit after tax increased from INR 3,029.2 crore in FY23 to INR 3,646.6 crore in FY25. Asset quality has remained steady despite this explosive increase; at the end of FY25, combined gross bad loans were 1.9% and net bad loans were 0.8%, backed by a provision coverage ratio of 58.5%.

    In FY25, its net interest margin was 5.2%, indicating strong spreads throughout its lending operations. Tata Capital reported a consolidated net profit of INR 1,041 crore in Q1 FY26, more than doubling the INR 472 crore earned in the same quarter the previous year. Total income increased to INR 7,692 crore from INR 6,557 crore for the quarter ended June 2024, continuing the upward trend into the current fiscal year.

    Quick
    Shots

    •47.58 crore shares – OFS (26.58 cr) +
    Fresh issue (21 cr).

    •Tata Sons to offload 23 cr shares,
    IFC to sell 3.58 cr shares (holds 1.8%).

    •IPO proceeds to boost Tier-1 capital
    base and support future lending growth.

    •Likely to be biggest IPO in Indian
    financial services sector.

  • Tata Capital Files for IPO: Tata Sons-Backed NBFC Plans Major Market Debut

    In order to acquire money through an initial public offering (IPO), Tata Capital, the main financial services provider for the Tata Group, has submitted draft documents to SEBI, the capital markets regulator. The IPO’s entire offer size is 47.58 crore shares, of which 21 crore will be issued as new shares and the remaining 26.58 crore will be sold by current owners.

    Tata Sons and IFC to Offload Shares in IPO

    In order to reduce its interest below 75%, Tata Sons intends to sell up to 23 crore shares in the offering. The sale of up to 3.58 crore shares is what the International Finance Corporation is proposing.

    The price range for the Tata Sons-backed NBFC has not yet been disclosed. On a fully diluted basis, Tata Sons now holds an 88.6% ownership in the NBFC, with the remaining 7% coming from other Tata Group firms.

    Utilization of IPO Proceeds: Lending and Expansion

    Future capital needs of the business, including further lending, will be covered by the proceeds of the new issue. Additionally, offer expenditures will be covered by a part of the new issue’s revenues. Tata Capital is the third-largest NBFC in terms of loan book size, with an overall AUM of INR 2.27 lakh crore.

    IPO Triggered by RBI Regulation for Systemically Important NBFCs

    With 1,496 locations around India, it is one of the largest and most diverse NBFCs with the quickest rate of growth. Private equity, wealth management, and the distribution of third-party goods are some of its other ventures. Tata Capital has received INR 6,000 crore in capital infusions over the past six years, with INR 2,000 crore and INR 500 crore coming in FY24 and FY23, respectively. A regulatory mandate is driving the initial public offering (IPO).

    Tata Capital must go public within three years after being designated as an upper-layer systemically important NBFC by the Reserve Bank of India in September 2022. This September marks the end of that deadline. The offering’s bookrunning lead managers include Citigroup Global Markets, BNP Paribas, and Kotak Mahindra Capital.

    IPO Momentum in India: Tech Firms Line Up for Listings in 2025

    In the first half of 2025, the IPO pace was slowed by global tensions and the tariff war that US President Donald Trump started. Because of this, in H1 2025, just two cutting-edge IT companies—ArisInfra and Ather Energy—debuted on the public market.

    Nonetheless, it is anticipated that the number of IPOs will rise significantly in the second half of the year. Wakefit, Pine Labs, Curefoods, Capillary Technologies, Shadowfax, Shiprocket, and Urban Company are among the cutting-edge tech firms that have submitted their draft papers to SEBI and are currently seeking approval to begin their public offerings.

  • Tata Capital Submits DRHP for a Massive IPO of INR 15,000 Crore

    In preparation for the launch of its massive INR 15,000 crore Tata Capital IPO, the Tata Group has submitted draft documents to the Securities and Exchange Board of India, the capital market regulator. The conglomerate headed by N Chandrasekaran has reportedly submitted its paperwork to SEBI in preparation for its much-anticipated IPO, which is owned by Tata Sons and IFC. Tata Sons and IFC would sell their shares in the Tata Capital IPO, which would be an offer for sale (OFS), according to the draft paper. With the help of Kotak Mahindra Capital, Citi, JP Morgan, Axis Capital, ICICI Securities, HSBC Securities, IIFL Capital, BNP Paribas, SBI Capital, and HDFC Bank, Tata Sons submitted the draft documents via the confidential procedure. The draft papers have been submitted to the market regulator via private pre-filing process, according to a recent media report. A mix of main and secondary share offerings will be made; Tata Sons and investor IFC will split the shareholding, with the former contributing more.

    More Details of the IPO

    An news agency stated on March 9, 2025, that Tata Capital is expected to submit initial public offering (IPO) paperwork to markets regulator Sebi in order to raise $2 billion (more than 17,000 crore Indian rupees). Only after receiving final NCLT permission for the Tata Motors Finance merger with the company would this step be taken. According to this news outlet, Tata Capital’s initial public offering (IPO) would cost $11 billion. The National Company Law Tribunal (NCLT) is awaiting for the final decision, which should be closed by the end of this fiscal year (FY25). The Reserve Bank of India (RBI) has designated Tata Capital as an upper-layer non-banking finance company (NBFC), and the board has already given its permission for the inaugural share sale to be floated. The proposed IPO would include 2.3 crore equity shares through a new issue and an offer of sale (OFS) by some current owners, per a disclosure given to stock markets.

    Tata Capital Plans to Raise Funds

    In addition to the IPO, Tata Capital declared that it will further strengthen its financial position prior to the public listing by raising money through a rights issue. If successful, this would be one of the biggest initial share sales in the nation’s financial industry. Following the offering of Tata Technologies in November 2023, this would also be the second public market debut for the Tata Group in recent years. The corporation is making this move in an attempt to meet the RBI’s listing standards. Within three years of being classified as such, upper-layer NBFCs must list on the stock exchange in accordance with the RBI’s mandate. In September 2022, Tata Capital was classified as an upper-layer NBFC.

  • Tata Capital’s IPO Gets Board Nod, 23 Crore Shares to Be Issued

    Tata Capital, the financial services arm of the Tata Group, has received board approval to proceed with an initial public offering (IPO). The company plans to issue 23 crore new shares and allow existing shareholders to sell their stakes through an offer for sale. This move complies with the Reserve Bank of India’s mandate requiring “upper layer” non-banking financial companies (NBFCs) to list by September 2025. This IPO marks the first for the Tata Group since Tata Technologies went public in November 2023.

    Ownership and Business Details

    Tata Capital was founded in 2007 and offers different types of loans, including home and personal loans. As of March 2024, Tata Sons owns 92.8% of the company. Other Tata Group firms, select officials, external organizations, and the International Finance Corporation (IFC) hold the remaining shares.

    INR 1,504 Crore Rights Issue

    Along with the IPO, Tata Capital’s board has approved an INR 1,504 crore rights issue for existing shareholders. A rights issue allows current shareholders to buy more shares at a fixed price. This helps companies raise money without determining a market price through a public listing.

    To prevent further expansion of its shareholder base, Tata Capital has introduced a provision preventing shareholders from waiving their rights in the rights issue until the company’s shares are listed on stock exchanges.

    Market Impact

    After reports that Tata Capital secured board approval for its IPO, shares of Tata Investment Corporation surged over 10%, reaching an intraday high of INR 6,344 on the BSE. This sharp rise came after Tata Capital approved its plan to go public, showing strong investor optimism about the upcoming IPO.

    Why This Matters

    The RBI wants large NBFCs to go public to improve transparency and governance in the financial sector. Tata Capital’s decision to launch an IPO follows this guideline and strengthens its position in the market.

    While the company has not yet shared details about pricing or dates, the IPO is expected to draw strong interest. The Tata Group is a well-known group, and Tata Capital is a key player in financial services.

    In summary, Tata Capital’s IPO and INR 1,504 crore rights issue mark a big step for the company. It helps meet RBI rules and prepares Tata Capital for growth in the stock market.

    List of All the Tata-Owned Companies | Tata Group
    Tata Group of Industries is an Indian multinational conglomerate founded by Jamshedji Tata. Here’s a list of all the companies owned by Tata.
    StartupTalkyVivek Dev Jacob