Tata Capital Files for ₹17,000 Cr IPO, Set to Launch India’s Biggest NBFC Listing

Tata Capital, the financial services arm of Tata Sons, has filed an updated Draft Red Herring Prospectus (DRHP) with SEBI on August 4, signalling its intention to launch India’s largest NBFC IPO valued at approximately $11 billion. The filing covers a combined fresh issue of 21 crore shares and an Offer for Sale (OFS) of 26.58 crore shares, totalling 47.58 crore equity shares of face value ₹10 each.

IPO Structure and Shareholding Details

Under the OFS portion, Tata Sons intends to offload up to 23 crore shares, while International Finance Corporation (IFC) will divest around 3.58 crore shares. The capital raised via the fresh issue is earmarked to strengthen Tata Capital’s Tier-1 capital base, supporting future expansion in lending operations.

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Financial Highlights and Market Positioning

The Tata Capital IPO is part of RBI’s directive requiring upper-layer NBFCs to list by September 2025. Tata Capital is complying by converting itself into a publicly traded entity well ahead of the deadline. Its reported net profit surged to ₹3,655 crore in FY25, up from ₹3,150 crore the previous year. Its revenue from operations advanced 57.14% to ₹25,719.77 crore in FY25 as compared to ₹16,366.47 crore a year back. The company holds a strong footprint in retail, SME, and corporate lending, with gross loans exceeding ₹2,265 billion as of March 2025. It currently has over 7 million customers, 1,496 branches across 1,102 locations, and nearly 30,000 employees across multiple segments.

Key Advisors and Expected IPO Size

A raft of investment banks, including Kotak Mahindra Capital, Axis Capital, BNP Paribas, Citigroup, HDFC Bank, ICICI Securities, IIFL Capital, SBI Capital Markets, HSBC Securities, and J.P. Morgan India, have been appointed as book-running lead managers; MUFG Intime India is serving as registrar.

Market analysts expect the IPO to raise around ₹17,000 crore (~$2 billion), making it one of the most closely watched offerings of 2025. It positions Tata Capital as a leading financial services company meeting RBI listing requirements while aligning with investor appetite for high‑quality NBFC stocks.

Conclusion

Tata Capital’s IPO represents a landmark event in India's financial markets, addressing regulatory requirements and potentially unlocking substantial shareholder value. The fresh capital infusion aims to bolster lending capacity, while the OFS provides exit avenues for existing shareholders. As one of India’s largest NBFCs launches its public offering, investor focus now turns to pricing, valuations, and market appetite.