Tata Capital To Float $2-Billion IPO In September Last Week, Eyes $11-Billion Valuation

Tata Capital, the non-banking financial company (NBFC) of the Tata Group, plans to launch its USD 2 billion (Rs 17,200 crore) initial public offering (IPO) on September 22, eyeing a value of USD 11 billion, market sources said.

Tata Capital is likely to make its stock market debut by September 30, and its proposed IPO of 47.58 crore shares comprises a fresh issue of 21 crore equity shares as well as an offer for sale (OFS) of 26.58 crore shares, according to the company’s updated draft red herring prospectus (DRHP) filed in August.

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Presently, Tata Sons holds an 88.6 per cent stake in Tata Capital, while the World Bank Group’s International Finance Corporation (IFC) owns a 1.8 per cent shareholding.

Under the OFS component, Tata Sons will offload 23 crore shares, while the IFC will divest 3.58 crore shares.

Proceeds from Tata Capital’s IPO will be used to strengthen the company’s Tier-1 capital base, supporting future capital requirements, including onward lending.

The IPO is expected to be the largest public issue in India’s financial sector, and it will mark the Tata Group’s second public listing in recent years, following the debut of Tata Technologies in November 2023.

The IPO is being undertaken in line with the Reserve Bank of India’s (RBI) listing mandate for upper-layer NBFCs, which requires them to be listed within three years of being notified as an “upper layer” NBFC. The three-year deadline ends in September 2025, since Tata Capital was officially designated as an “upper layer” NBFC in September 2022.

The performance of Tata Capital has been consistent, with total gross loans of Rs 2.26 lakh crore as of March 2025, reflecting a compound annual growth rate of 37 per cent between FY23 and FY25. Its profit after tax (PAT) stood at Rs 3,646.6 crore in FY25, increasing from Rs 3,029.2 crore in FY23, translating into a compounded aggregate growth rate (CAGR) of 10 per cent.