Tata Capital IPO 2025: To Raise $1.7 Billion in India’s Biggest Listing of the Year
Tata Capital Limited, the financial services arm of the Tata Group, is set to launch an Initial Public Offering (IPO) worth ₹15,512 crore (≈ $1.7 billion), making it the largest IPO in India in 2025 and the biggest-ever by a Non-Banking Financial Company (NBFC).
With a price band of ₹310–₹326 per share, Tata Capital’s IPO could value the company at around ₹1.31–1.38 lakh crore (≈ $15.7 billion). The IPO opens for subscription on October 6, 2025, and closes on October 8, 2025, with anchor investors bidding from October 3.
Tata Capital Company Profile
Founded in 2007, Tata Capital is a diversified financial services company offering a wide range of products for retail, SMEs, and corporate clients. It is a wholly owned subsidiary of Tata Sons Private Limited and plays a crucial role in the Tata Group’s presence in financial services.
Key Products & Services
| Segment | Offerings |
|---|---|
| Retail Finance | Personal loans, home loans, auto loans, two-wheeler loans, consumer durable finance |
| SME & Commercial Finance | Business loans, working capital, equipment finance, leasing |
| Wealth Management & Securities | Mutual fund distribution, investment banking, retail broking |
| Credit Cards | Tata Cards (in partnership with SBI Cards) |
| Subsidiaries | Tata Capital Housing Finance, Tata Securities, Private Equity & Cleantech Finance |
- Loan book FY24: ₹1,57,761 crore
- Customers served: 4.5 million+
- Branch network: 723+
- Employees: ~8,700
Leadership & Ownership
- Rajiv Sabharwal, MD & CEO, leads Tata Capital.
- Pre-IPO shareholding:
- Tata Sons: ~88.6%
- TMF Holdings: ~4.6%
- Tata Investment Corp: ~2.1%
- IFC: ~1.8%
- Others: Employees & welfare trusts
After the IPO, Tata Sons will remain the majority shareholder, though its stake will dilute.
IPO Details
| Parameter | Details |
|---|---|
| IPO Size | ₹15,512 crore (≈ $1.7B) |
| Price Band | ₹310 – ₹326 per share |
| Valuation | ₹1.31 – 1.38 lakh crore (≈ $15.7B) |
| Fresh Issue | ~₹6,846 crore |
| Offer for Sale (OFS) | ~₹8,666 crore |
| Anchor Book | ~₹4,642 crore |
| IPO Dates | Oct 6–8, 2025 (Oct 3 for anchors) |
| Lot Size | 46 shares (minimum) |
| Listing Exchanges | NSE, BSE |
Notably, the IPO price is at a 56% discount compared to Tata Capital’s unlisted market valuation (~₹735 per share), making it highly attractive for investors.
Why Tata Capital IPO Is Significant
- Largest NBFC IPO in India’s history
- Regulatory push: RBI has mandated listing of upper-tier NBFCs by Sept 2025.
- Massive discount vs unlisted share price (~56%).
- High institutional demand: Morgan Stanley, Goldman Sachs, Amansa, and other global funds eyeing anchor investment.
- Strengthening capital base: Fresh issue proceeds to boost Tier-1 capital for loan book expansion.
Market Size & Outlook
- India’s financial services sector contributes ~6% to GDP.
- NBFC sector expected to grow at a CAGR of 12–14% over the next five years.
- India’s IPO market remains strong, with an estimated $8B+ IPO pipeline in late 2025.
- Tata Capital’s diversified offerings (consumer loans, housing, SME finance) position it well to tap this growing demand.
Growth Strategy & Future Plans
- Expand housing finance & consumer lending to underserved regions.
- Strengthen digital lending & AI-driven credit evaluation systems.
- Focus on green financing and clean technology projects.
- Increase cross-selling through Tata Group’s customer ecosystem.
Risks & Challenges
- Credit risk from retail/SME loan defaults.
- Competition from banks, fintechs, and NBFC peers.
- Economic slowdown & interest rate cycles may pressure margins.
- Execution risk in managing rapid expansion and technology adoption.
FAQs on Tata Capital IPO 2025
When is Tata Capital IPO 2025?
Opens on October 6, 2025 and closes on October 8, 2025 (anchor book on Oct 3).
What is Tata Capital IPO price band?
₹310 – ₹326 per share.
What is Tata Capital’s valuation post IPO?
~₹1.31–1.38 lakh crore (≈ $15.7 billion).
Why is the IPO priced at a discount?
To encourage retail participation and ensure strong subscription.
Yes, even after dilution.
What will IPO proceeds be used for?
Strengthening Tier-1 capital, business expansion, and digital transformation.
Conclusion
The Tata Capital IPO 2025 is more than just another listing — it’s a landmark event for India’s NBFC sector and capital markets. With its strong brand trust, diversified portfolio, attractive pricing, and growth potential, Tata Capital offers a unique investment opportunity.
However, investors should weigh risks like credit cycles, competition, and valuation sustainability. Still, as India’s biggest IPO of 2025, Tata Capital’s listing could set the tone for the financial services sector in the years ahead.
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