Tata Capital IPO 2025: Complete Details

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Overview

Tata Capital, the financial services arm of the Tata Group, is set for its initial public offering (IPO) in September 2025. This IPO marks a significant milestone as Tata Capital prepares to comply with the Reserve Bank of India's (RBI) regulatory mandate requiring large NBFCs (Non-Banking Financial Companies) classified as "Upper Layer" to be listed publicly within three years.

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Key IPO Details

Parameter	Details
IPO Issue Size	Approximately ₹17,200 crore (Fresh + OFS)
Number of Shares	~47.58 crore equity shares
Fresh Issue	~21 crore shares
Offer for Sale (OFS)	~26.58 crore shares by Tata Sons Private Limited
Face Value	₹10 per share
Price Band (Expected)	Around ₹400 per share
Lot Size	To be announced
Listing Exchanges	BSE and NSE
IPO Opening Date	Yet to be announced (Expected September 2025)
Registrar	MUFG Intime India Pvt. Ltd
Lead Managers	Kotak Mahindra Capital, Axis Capital, BNP Paribas, Citigroup, HDFC Bank

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Purpose of the IPO Proceeds

• Augment Tata Capital’s Tier-I capital base.
• Strengthen lending capacity, especially targeting growth in tier 1 and tier 2 cities.
• Support expansion in infrastructure and clean energy finance.
• Meet regulatory capital requirements under RBI’s scale-based regulation framework.

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Financial Highlights (FY 2024-25)

Financial Metric	Figures (in ₹ crore)	Year-over-Year Growth
Total Revenue	₹28,370 crore	+56% over FY 2023-24
Profit After Tax (PAT)	₹3,665 crore	Up from ₹3,150 crore
Total Assets	₹1,76,694 crore	Significant increase
Loan Book Size	₹1.57 trillion	7th largest NBFC loan book in India
Net Worth	₹32,588 crore	Robust financial stability

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Promoter Holding

Promoter	Pre-IPO Shareholding	Post-IPO Shareholding (Estimated)
Tata Sons Private Ltd.	95.5%	Will reduce post equity dilution

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Strategic Importance

• Tata Capital is an "Upper Layer" NBFC under RBI’s NBFC Scale-Based Regulation; IPO listing is mandatory by September 2025.
• Tata Capital is positioned as the 7th largest NBFC in India by loan book.
• Strong credit ratings (AAA from CRISIL, ICRA, CARE) reflecting high creditworthiness.
• Diversified financial products: retail & SME lending, commercial finance, wealth & investment banking, private equity, and sustainable finance.

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Market Sentiment & Valuation

• Unlisted Tata Capital shares have traded between ₹800-1,050 per share, reflecting strong investor interest.
• IPO price band anticipated near ₹400 per share, implying a more attractive valuation multiple compared to unlisted prices.
• Estimated P/E ratio at IPO around 40-41x based on underlying earnings.
• Comparatively higher valuation multiples than peers like Bajaj Finance, but IPO pricing expected to be more reasonable.

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Why Consider Investing in Tata Capital IPO?

• Backed by the reputable Tata Group, adding trust and governance confidence.
• Significant growth in revenue and profitability in the past years.
• Expansion and regulatory compliance provide a growth roadmap.
• Listing on the stock exchange provides liquidity options.
• Diversified lending portfolio with a strong presence in emerging growth sectors.

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Summary Table of Tata Capital IPO

Feature	Data/Information
IPO Issue Size	₹17,200 crore
Fresh Issue Shares	21 crore
Offer for Sale Shares	26.58 crore
Face Value	₹10
Expected Price Band	₹400/share approx.
Listing Deadline	September 2025
Revenue (FY 2025)	₹28,370 crore
Net Profit (FY 2025)	₹3,665 crore
Total Assets	₹1.76 lakh crore
Loan Book Size	₹1.57 trillion
Promoter Holding Pre-IPO	95.5%
Regulatory Mandate	Must list due to RBI's Upper Layer NBFC rules

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Important Notes

• The IPO opening and closing dates are yet to be announced officially.
• Investors should review the final IPO prospectus for complete details.
• Market risks and company performance should be analyzed before investing.
• The upcoming IPO is one of the most anticipated in the financial sector for 2025.

Tata Capital’s proposed IPO details regarding issue size and share count are as follows:

• Total Issue Size: Approximately ₹17,200 crore

• Total Shares Offered: About 47.58 crore equity shares

  • Fresh Issue: Up to 21 crore equity shares (new shares issued by Tata Capital)

  • Offer for Sale (OFS): Up to 26.58 crore shares sold by existing shareholders (mainly Tata Sons and International Finance Corporation)

Additional details:

• Tata Sons is expected to sell around 23 crore shares.

• IFC (International Finance Corporation) plans to sell approximately 3.58 crore shares.

• The face value of each share is ₹10.

• The expected price band is roughly ₹375 to ₹400 per share.

This IPO includes both fresh equity to raise capital for growth and an offer for sale which provides liquidity to existing shareholders. The IPO complies with RBI’s mandate for listing upper-layer NBFCs.

This makes Tata Capital IPO one of the largest financial sector IPOs anticipated in 2025.