Tata Capital files for IPO, marks next big move by Tata Group

Synopsis

Tata Capital, the Tata Group's NBFC, has filed for an IPO to raise funds and meet RBI's listing requirements for upper-layer NBFCs by September 2025. The IPO includes a fresh issue of 210 million shares and an offer for sale of 265.8 million shares by existing shareholders like Tata Sons and IFC.

Mumbai: Tata Capital, the non banking finance company of the salt to aviation Tata Group has filed for an initial public offering (IPO), draft papers filed with the regulator late on Monday evening showed.

The financial services company will issue up to 210 million new shares, while existing shareholders led by Tata Sons and also including World Bank arm International Finance Corp (IFC) will offload upto Rs 265.8 million shares, the draft red herring prospective made public by the company said.

Of the shares offered for sale, Tata Sons, the majority shareholder with 88.6% stake will sell 230 million shares while IFC will sell 35.82 million shares out of its 71.64 million shares held or roughly half of the 1.80% it holds in the company.

The total share base of the company is at more than 4 billion shares, meaning the equity dilution post issue of fresh shares would be less than 1%.

Tata Capital's IPO will be one of the largest ever in the financial sector aggregating to Rs 17,200 crore. Tata Sons and other group company own more than 95% equity stake in the company. The company had filed for a confidential DRHP on April 5.

In its DRHP the company said it will utilize the proceeds from the fresh issue of shares towards augmenting its capital base for future requirements including lending, Further, a portion of the proceeds from the fresh Issue will be used towards meeting offer expenses.

The IPO was necessitated because NBFC regulator Reserve Bank of India rules state that upper-layer NBFCs like Tata Capital and are required to list by September 2025.

The company had filed the DRHP through the confidential route in April which was approved by the markets regulator in June.

"Unless the regulator has some specific comments, it is fair to assume that the IPO will be ready to go in three weeks since all other regulatory doubts have been already cleared," said a person familiar with the details.

The company had made a net profit of Rs 3665 crore in the year ended March 2025 up 16% from Rs 3150 crore reported a year ago. The company had a Rs 2.20 lakh crore loan book at the end of March 2025 62% of which were to individuals.

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