Tata Capital Gets SEBI Greenlight for ₹17,200 Cr IPO; Listing Likely by FY25-End

Tata Capital has received approval from the Securities and Exchange Board of India (SEBI) for its confidential draft red herring prospectus (DRHP), bringing it a step closer to launching its long-anticipated initial public offering (IPO). The proposed issue size is estimated at ₹17,200 crore, making it one of the most significant public offerings in the financial space this year.

The company had filed a confidential draft in April, and the latest approval allows it to proceed with a full public prospectus. According to reports, the updated filing could happen as early as July, with the IPO expected to hit the markets soon after. This timeline keeps Tata Capital on track to meet the Reserve Bank of India’s rule that requires top-tier NBFCs to list on the stock exchange by September 2025.

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IPO Details and Shareholding Impact

The issue will include both new shares and a stake sale by existing shareholders. Tata Sons, which currently controls around 93% of Tata Capital, is expected to offload a part of its holding through an offer for sale. Reports also suggest that the International Finance Corporation (IFC), one of the minority investors, may also sell some shares.

The offering is expected to value Tata Capital at around ₹91,000 crores (approximately $11 billion). This valuation, if realised, could position the IPO as a landmark listing for the Indian financial sector in 2025.

Business Performance and Market Response

In terms of financials, Tata Capital has delivered impressive results. The company posted a net profit of ₹1,000 crore in the fourth quarter of FY25, representing a 31% rise over the same period the previous year. Revenue for the quarter reached ₹7,478 crores. For the full fiscal year, the company earned ₹3,655 crore in profit after tax, while revenue stood at ₹28,313 crore, significantly higher than the ₹18,175 crore reported in FY24.

Meanwhile, shares of Tata Investment Corporation, another entity within the Tata Group, rose by 6% following news of Tata Capital’s IPO progress. The surge in share price reflects rising investor confidence in the group’s financial arm entering the public market.

Looking Ahead

Now that SEBI has given its nod, Tata Capital is expected to make its full RHP public soon. With the listing deadline approaching, the IPO launch could take place as early as next month, depending on market conditions. Once listed, the company would join the ranks of publicly traded financial institutions, improving transparency and expanding its capital base for future growth.