Tata Capital, the financial services powerhouse of the Tata Group, is gearing up for one of 2025’s largest IPOs with a ₹17,200 crore public offering set to open on October 6, 2025. This landmark listing, comprising a fresh issue and an offer for sale (OFS), not only aims to bolster the company’s capital base but also complies with RBI’s mandate for upper-layer NBFCs to go public. With anchor investor bidding kicking off on October 3 and the issue closing on October 8, the IPO eyes a whopping $18 billion valuation, positioning Tata Capital as a key player in India’s NBFC sector amid surging demand for credit and lending services.
For retail investors, institutions, and Tata loyalists, this IPO represents a rare chance to own a slice of a diversified financial giant serving over 10 million customers. Backed by strong FY25 financials, including a 10% profit jump to ₹3,655 crore, the offering could set the tone for more NBFC listings. Let’s dive into the IPO structure, timelines, and what makes it a hot ticket.
IPO Structure: Fresh Issue Meets Major OFS from Tata Sons and IFC
The Tata Capital IPO totals 47.58 crore equity shares at a face value of ₹10 each, blending growth capital with promoter divestment. Proceeds from the fresh issue will primarily strengthen the company’s Tier-1 capital for onward lending and future expansions, while the OFS allows key stakeholders to cash out partially.
Key components at a glance:
| Component | Details | Promoter/Investor Involved |
|---|---|---|
| Fresh Issue | 21 crore equity shares (₹ approx. 7,000-8,000 crore) | Tata Capital (for capital augmentation) |
| Offer for Sale (OFS) | 26.58 crore equity shares (₹ approx. 9,000-10,000 crore) | Tata Sons (23 crore shares); IFC (3.58 crore shares) |
| Total Size | 47.58 crore shares (₹17,200 crore) | – |
Tata Sons, holding an 88.6% stake pre-IPO, will reduce its exposure slightly through the OFS, while the International Finance Corporation (IFC) trims its minority holding. This structure ensures the company raises fresh funds without diluting control excessively, aligning with SEBI’s approval granted in July 2025 after a confidential filing in April.
Timeline and Key Dates for Tata Capital IPO
Efficiency is key in this fast-tracked offering, with a tight subscription window to capitalize on market momentum. The IPO follows the book-built process, with allotment expected by October 9 and listing on BSE/NSE around October 13.
| Event | Date |
|---|---|
| Anchor Investor Bidding | October 3, 2025 |
| Issue Opens | October 6, 2025 |
| Issue Closes | October 8, 2025 |
| Allotment Finalization | October 9, 2025 |
| Refund Initiation | October 10, 2025 |
| Shares Credit to Demat | October 11, 2025 |
| Listing on BSE/NSE | October 13, 2025 |
Retail investors can apply via ASBA or UPI, with lot sizes and price bands to be finalized in the Red Herring Prospectus (RHP). Unlisted shares have dipped 35% from April peaks to ₹735, signaling cautious sentiment but potential listing gains if demand holds.
Financial Snapshot: Robust Growth Fuels IPO Hype
Tata Capital’s FY25 performance underscores its appeal: revenue soared 56% to ₹28,313 crore from ₹18,175 crore in FY24, driven by lending across consumer finance, SME loans, and infrastructure. Profit after tax climbed 10% to ₹3,655 crore, reflecting operational efficiency in a high-interest environment.
The company operates as a systemically important non-deposit-taking NBFC, with assets under management exceeding ₹1.5 lakh crore. This IPO fulfills RBI’s September 2022 upper-layer classification requirement, securing a minor extension to list post-September 30 deadline. Comparable peers like HDB Financial Services (₹12,500 crore IPO in June 2025) and Bajaj Housing Finance (135% listing premium in 2024) highlight the sector’s blockbuster potential.
Why This IPO Matters: Boost for Tata Ecosystem and Investors
For the Tata Group, the listing unlocks value from its financial arm, potentially funding expansions in EVs and renewables via cross-holdings. Investors eye it as a defensive play in volatile markets, with LIC reportedly anchoring heavily. At a $18 billion valuation, it could rival global NBFCs, though grey market premiums (GMP) remain muted amid broader sell-offs.
Challenges include interest rate risks and competition from banks, but Tata Capital’s diversified portfolio and brand trust mitigate these. As India’s NBFC sector eyes 15-20% CAGR, this IPO could catalyze more listings.
Conclusion: Tata Capital IPO Set to Electrify October 2025
The Tata Capital ₹17,200 crore IPO opening on October 6 isn’t just a listing—it’s a milestone for India’s financial markets, blending Tata’s legacy with modern lending prowess. With strong fundamentals and a strategic timeline, it promises robust participation from anchors to retail. As subscription nears, watch for price band announcements to gauge the frenzy. CNBC
