Mega IPO in the Making
Tata Capital, the flagship financial services arm of the Tata Group, is gearing up for its much-anticipated initial public offering. The company is targeting a post-money equity valuation of around $16.5 billion or Rs 1.46 lakh crore, making this one of the largest listings in India’s history. According to sources, the anchor investor portion is expected to open on October 3, followed by public subscription between October 6 and 8.
The offering will include a mix of fresh shares and an offer-for-sale by Tata Sons and International Finance Corporation. The total IPO size is pegged at $1.85 billion or Rs 16,400 crore. Insurance giant LIC is also expected to make a significant investment, further underscoring the scale of the offering.
Compliance with RBI Mandate
As an upper layer non-banking financial company, Tata Capital is required under Reserve Bank of India regulations to list by September 30. The firm secured a short extension to meet regulatory requirements and is now aligned to launch in early October.
The IPO proceeds will primarily be used to strengthen Tata Capital’s Tier I capital base, supporting future lending requirements and growth ambitions. Legal advisors on the issue include Cyril Amarchand Mangaldas, AZB & Partners, and Latham & Watkins, with investment banks such as Kotak Mahindra Capital, Citi, JP Morgan, Axis Capital, and HSBC serving as book runners.
Strong Business Fundamentals
Since commencing lending operations in 2007, Tata Capital has served over seven million customers across India. The company offers a wide suite of more than 25 lending products, catering to salaried professionals, entrepreneurs, SMEs, and corporates. It also distributes third-party products including insurance and credit cards, while offering wealth management and acting as sponsor and investment manager to private equity funds.
As of March 2025, Tata Capital reported total gross loans of Rs 2,36,550 crore, with retail and SME lending making up 88.5 percent of its loan book. The firm’s gross loans have grown at a compound annual growth rate of 37.3 percent between 2023 and 2025, making it one of the fastest-growing diversified NBFCs in the country.
The company also has a strong nationwide presence with nearly 1,500 branches spread across 27 states and union territories, providing it with a wide distribution network to fuel further expansion.
Market Context and Investor Interest
Tata Capital’s listing comes at a time when several NBFCs have held back from IPO plans due to challenging global and domestic market conditions. However, the strength of the Tata brand and the company’s rapid growth have attracted strong interest from institutional investors. LIC’s expected participation adds credibility to the issue and may influence other large investors to come on board.
Market watchers believe this IPO will not only unlock value for Tata Sons but also cement Tata Capital’s position among India’s largest and most trusted financial institutions. With robust growth numbers and a massive customer base, the listing is expected to attract strong demand from both institutional and retail investors.
Road Ahead for Tata Capital
Following the successful listing of Tata Technologies in 2023, Tata Capital’s debut marks another major milestone for the Tata Group in public markets. With a strong balance sheet, diversified product portfolio, and aggressive growth strategy, Tata Capital is well-positioned to play a central role in India’s expanding financial services sector.
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