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.