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Tata Capital IPO Gets SEBI Nod for ₹17,200 Cr Issue

There’s a big buzz in India’s financial world right now; SEBI has just approved Tata Capital’s confidential Draft Red Herring Prospectus (DRHP). That means the company is a big step closer to launching one of the year’s biggest IPOs, potentially raising around ₹17,200 crore.
This approval marks a significant milestone for Tata Capital, the financial services arm of the renowned Tata Group. The DRHP was filed privately back in April and has now cleared SEBI’s strict checks. That’s a solid vote of confidence in Tata Capital’s transparency and regulatory compliance.
Next? Experts anticipate that a public version of the DRHP will be available on SEBI’s website within two weeks. After that, a final prospectus may land by early July, putting the IPO launch on track for later this summer.

What’s in the Deal? A Two-Part IPO
The proposed ₹17,200 crore IPO will likely have two parts:
- Fresh Issue: New shares that will bring extra capital into Tata Capital.
- Offer-for-Sale (OFS): Existing shares sold by Tata Sons, which currently owns about 93% of Tata Capital.
Based on current numbers, Tata Capital could be valued at nearly $11 billion, making this one of the largest IPOs in India’s financial sector in years.
Why It’s So Important: RBI’s Rules
Here’s the backstory: In 2022, the RBI classified Tata Capital and Tata Sons as “upper-layer NBFCs.” That’s a fancy way of saying they’re among the most important financial players, and they’ve got stricter rules to follow. One of them? They must list publicly by September 2025.
Thanks to SEBI’s approval, Tata Capital is on track to meet that deadline. For investors, it’s a sign of strong governance, transparency, and serious institutional credibility.
Strong Financials Back the Buzz
Tata Capital isn’t just riding on the Tata name; it’s bringing impressive numbers to the table:
- Q4 FY25: Net profit jumped 31% year-on-year to around ₹1,000 crore. Revenue increased by nearly 50% to ₹7,478 crore.
- FY25 Annual: Net profit rose to ₹3,655 crore from ₹3,327 crore in FY24. Revenue soared to ₹28,313 crore from ₹18,175 crore.
Unlisted shares are currently trading near ₹1,050, which implies a valuation of around ₹3.8 lakh crore. That’s a sign of strong investor faith even before the IPO.
Market watchers are expecting strong demand for Tata Capital’s IPO, and here’s why:
- It’s a leader in areas like consumer lending, wealth management, and infrastructure financing.
- It carries the powerful Tata Group brand, trusted by many.
- Its financial performance has been consistently strong.
- And it’s ticking all the boxes for regulatory transparency.
This IPO also marks the Tata Group’s most extensive listing since Tata Technologies went public in late 2023, a stock that skyrocketed 140% on its first day. So yes, memories (and expectations) are high.
What to Watch Out For
Even with all the positives, investors should keep an eye on a few potential risks:
- Economic shifts, such as rising interest rates and exposure to the power sector, could impact growth or asset quality.
- Regulatory oversight: As a top-tier NBFC, Tata Capital will stay under the RBI’s microscope.
- Global markets: International sentiment and policy changes may impact investor sentiment around the time of listing.
Still, Tata Capital’s diversified business model and scale make it well-equipped to handle these bumps in the road.
Big Picture: What This Means for Tata Group
For the Tata Group, this IPO isn’t just about raising money; it’s strategic. It helps meet regulatory requirements, strengthens governance, and introduces market discipline. It also opens doors. Once listed, Tata Capital will have new avenues for growth while freeing up Tata Sons to invest in areas such as technology, infrastructure, and innovation.
With SEBI’s green light, Tata Capital is officially on the runway. If all goes according to plan, the IPO is expected to take place by July or August 2025.
For investors, it presents an opportunity to own a stake in one of India’s most diversified financial powerhouses, backed by the Tata legacy and a solid track record. For Tata Group, it’s a smart step toward long-term growth, accountability, and market relevance.
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