Get Ready to Invest: Tata Capital’s Game-Changing ₹15,000 Crore IPO!

Tata Capital, the financial services subsidiary of the Tata Group, takes a significant step toward listing with an ambitious ₹15,000 crore IPO in the works.

In a pivotal move for its public market debut, Tata Capital Limited has formally submitted a confidential preliminary prospectus to SEBI (Securities and Exchange Board of India), initiating the process of its much-anticipated ₹15,000 crore Initial Public Offering (IPO).

Breakdown of the Offer

The company plans a two-part IPO offering. The first part consists of a new share issuance — about 2.3 crore equity shares, which will raise additional capital to fuel its growth initiatives. The second part of the offer will involve the sale of existing shares by its major stakeholders, predominantly Tata Sons, which holds a dominant 92.83% stake in the company. This share sale will enable a broader base of investors to become stakeholders in Tata Capital. The company’s shares are set to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), with final details on pricing and bid structure to be finalized later.

Leading Investment Banks to Guide the Offering

The IPO process will be managed by a group of prestigious financial institutions, who will handle various aspects of the offering The coalition includes leading financial institutions and consultancy firms such as Kotak Mahindra Capital, Axis Capital, Citi, JP Morgan, HSBC, ICICI Securities, IIFL Capital, BNP Paribas, SBI Capital, and HDFC Bank. These experts will assist in structuring the deal, determining pricing, and ensuring the offering aligns with market expectations.

Tata Capital’s Position in the Market

Founded in 2007, Tata Capital has become an established name in India’s financial services industry. The company provides a broad array of services ranging from consumer loans and wealth management to commercial finance and co-branded Tata Cards. Its operations span more than 900 locations across India, serving both retail and corporate customers.
Tata Capital’s strong network and diversified offerings have positioned it as one of the leading non-banking financial companies (NBFCs) in the country. With a customer-first approach, it leverages technology and innovation to maintain a competitive advantage in the sector.

A Look at the Financials: Growth Momentum

Tata Capital has demonstrated remarkable financial performance recently. The company reported ₹18,178 crore in revenue for FY24, reflecting a 34% increase compared to the prior year, showcasing its ability to meet growing demand for financial services across various segments.
Additionally, its net profit reached ₹3,150 crore in FY24, marking a 37% increase from the previous year’s figure of ₹2,300 crore. This growth signals strong operational efficiency and a healthy portfolio of assets.
In addition, Tata Capital’s loan portfolio exceeded ₹1 lakh crore, reflecting a 40% annual growth and solidifying its status as a major contender in India’s financial sector.

Rationale Behind Going Public

This IPO is strategically timed to align with Tata Capital’s long-term vision for expansion. With a growing demand for financing in India and a rising middle class, the company sees this as an opportunity to enhance its financial flexibility. The funds raised from the IPO will support business expansion, investment in technology, and improvements to its capital structure, particularly in underserved sectors.
This step also positions Tata Capital for further digital growth and increased penetration into new markets, thereby enabling it to reach a wider audience of both consumers and businesses.

Tata Group’s Strategy: Unlocking Value

The proposed IPO forms a key element of the Tata Group’s wider strategy to maximize the value of its subsidiaries. Similar efforts have been observed with Tata Technologies, which successfully went public, and it appears Tata Capital is following suit by capitalizing on its strong financial foundation to access additional capital markets.
This approach reflects a growing trend in the Group’s strategy to position its subsidiaries for greater visibility and growth opportunities.

Closing Thoughts: A Milestone for Tata Capital

Tata Capital’s decision to go public highlights its strong growth trajectory and market stability in India’s competitive financial services sector. By confidentially filing its IPO papers, the company ensures it has ample time to adjust its offering to market conditions before making any final decisions.
With continued growth prospects and a solid financial outlook, Tata Capital’s IPO is poised to be one of the most anticipated listings of 2025, drawing considerable attention from both retail and institutional investors.

The image added is for representation purposes only