Tata Capital, the non-banking financial services arm of the Tata Group, is preparing to launch a ₹17,000 crore (≈ US$2 billion) IPO in early October 2025, according to reports.
The company sought a short extension from the Reserve Bank of India (RBI) to push back the IPO timeline into October. The regulator has reportedly granted the extension. Hindustan Times
Key IPO Details
| Item | Detail |
|---|---|
| Amount to Raise | ~₹17,000 crore (around US$1.9-2.0 billion) |
| Valuation | Estimated valuation of about US$18 billion for Tata Capital in this IPO. |
| Share Sale Composition | • Fresh issue of ~21 crore shares • Offer for Sale (OFS) of ~26.58 crore shares, totaling ~47.58 crore shares. |
| Existing Shareholders Selling | Tata Sons plans to divest around 23 crore shares; International Finance Corporation (IFC) to offload ~3.58 crore shares. |
| Purpose of Funds | Proceeds from fresh issue to augment Tier-I capital and support lending growth. |
| Financials | In Q1 FY26, Tata Capital reported a net profit of ~₹1,041.0 crore, more than double the ~₹472.2 crore in the same quarter last year. Income rose to ~₹7,692.65 crore from ~₹6,557.40 crore. |
Regulatory Context & Timing
- Tata Capital is designated as an “upper-layer NBFC” by the RBI. Under RBI norms, NBFCs in this category are required to list publicly within three years of classification. Tata Capital was classified in September 2022.
- The deadline given by RBI was end-September 2025, but the company has obtained a short extension to complete IPO preparation and launch in October.
Implications & What to Watch
- Scale: If successful, this IPO would be one of the largest in India’s financial sector in recent years, and among the largest IPOs overall.
- Investor Interest: Given its size and the Tata brand, strong demand from institutional investors both domestic and global is likely. However, pricing, grey market valuations, and valuation multiples will be key focal points.
- Valuation Concerns: Some market watchers are cautious because grey-market prices for unlisted shares of Tata Capital have dropped (according to some sources), meaning the IPO pricing might need to be competitive.
- Regulatory & Market Timing: Listing by RBI deadline is a regulatory push, but overall market sentiment, interest rates, and global economic conditions will also influence IPO traction.
