Tata Capital Set to Launch $2 Billion IPO by September 30

Tata Capital, a prominent non-banking financial company (NBFC) in India, is poised to launch an initial public offering (IPO) valued at approximately $2 billion (Rs 17,200 crore) in the last week of September 2023, with a potential market debut on September 30. This move marks the Tata Group’s second major public listing, following the successful debut of Tata Technologies in November 2023.

The IPO will consist of a total of 47.58 crore shares, which includes a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares. According to the updated draft red herring prospectus (DRHP) filed in August, Tata Sons plans to sell 23 crore shares, while the International Finance Corporation (IFC) will divest 3.58 crore shares. Currently, Tata Sons holds an 88.6 percent stake in Tata Capital, with IFC owning 1.8 percent.

Proceeds from this IPO are intended to enhance the company’s Tier-1 capital base, thereby supporting future capital requirements and lending activities. If successful, this offering will stand as the largest public issue within India’s financial sector.

Investor Engagement and Market Sentiment

Tata Capital has initiated a series of institutional roadshows aimed at attracting both global and domestic investors. Investor sentiment has become increasingly positive, driven by the expectation that the Tata Capital IPO could unlock significant value and solidify the Tata Group’s position in the financial services market.

This IPO is also in alignment with directives from the Reserve Bank of India, which mandates that all ‘upper layer’ non-banking financial companies must go public by September 2025. Tata Capital’s robust financial performance in advance of the listing has further bolstered investor confidence. In the first quarter of FY25, the company reported a 31 percent year-on-year increase in consolidated profit after tax (PAT), reaching Rs 1,000 crore. Revenue from operations surged nearly 50 percent to Rs 7,478 crore.

For the full fiscal year FY25, PAT increased to Rs 3,655 crore from Rs 3,327 crore in FY24, while total revenues rose to Rs 28,313 crore, up from Rs 18,175 crore the previous year.

Confidential Pre-Filing Route

In April 2025, Tata Capital submitted draft papers to the markets regulator, Securities and Exchange Board of India (SEBI), to initiate the IPO process. Notably, the draft papers were filed using a confidential pre-filing route, a trend that is gaining traction among Indian companies. This approach allows firms to delay public disclosure of details under the DRHP until later stages of the IPO process.

As Tata Capital approaches this significant milestone, the financial landscape in India stands to witness a pivotal shift, with the potential for enhanced investment opportunities and a strengthened presence of the Tata Group in the public financial services arena.