SEBI has approved Tata Capital’s confidential draft red herring prospectus (DRHP) for its ₹17,200 crore IPO, marking a major regulatory milestone. It’s one of the largest IPOs ever in India’s financial services sector.
📆 Expected Timeline
- DRHP Confidentially Filed: April 5, 2025
- SEBI Approval Received: June 21, 2025
- Public RHP Filing Expected: First week of July 2025
- IPO Launch Window: Likely July–August 2025
- Mandatory Listing Deadline: September 2025, as mandated for “upper-layer” NBFCs
💰 IPO Structure & Valuation
- Total Issue Size: ₹17,200 crore (~US$2 billion)
- Components: Combination of fresh issue and Offer For Sale (OFS) by Tata Sons
- Valuation Insights: Unlisted shares currently trade at ~₹1,050, implying a pre-IPO valuation around ₹3.8 lakh crore (~US$46 billion)
📈 Strong Financial Backdrop
- Q4 FY25 Performance:
- Net profit surged 31% to ₹1,000 crore
- Revenue increased by nearly 50% to ₹7,478 crore
- FY25 Annual Results:
- Profit rose from ₹3,327 crore to ₹3,655 crore
- Revenue jumped from ₹18,175 crore to ₹28,313 crore
⚖️ Regulatory Mandate & Market Position
- Tata Capital and Tata Sons fall under RBI’s “upper-layer” NBFC category, requiring a public listing by September 2025 economictimes
- Upon listing, Tata Capital will become the 17th publicly-listed Tata Group company, enhancing transparency and raising its market presence
✅ Why It Matters
- Major Financial Sector IPO: One of the largest listings in India’s NBFC space.
- Investor Appetite: Strong growth metrics and Tata backing could attract institutional interest.
- Regulatory Milestone: Aligns with RBI guidelines for NBFCs.
- Capital Raise Purpose: Funds expected to strengthen Tata Capital’s loan book and tier-1 capital.
- Macro Signal: Confidence in financial markets is strong, supported by India’s growing credit demand.
📌 Final Takeaway
With SEBI’s ₹17,200 crore IPO approval, Tata Capital is gearing up for a July IPO launch and mandatory listing by September. Investors should watch for the public RHP release soon and assess pricing, structure, and subscription trends in what could be one of this year’s marquee IPO offerings.
