Tata Capital IPO set for Oct launch, to raise up to ₹17,500 cr
Mumbai: Tata Capital’s much-anticipated initial public offering (IPO) is likely to open in the first half of October, slightly later than the September deadline set by regulators.
The delay followed approval from the National Company Law Tribunal (NCLT) in May for the merger of Tata Motors Finance, after which the non-banking finance company (NBFC) sought and received an extension.
Tata Motors Finance, once a key player in commercial vehicle financing, had assets under management (AUM) of ₹36,515 crore as of December 31, 2024.
Post-merger, Tata Capital’s credit cost rose to 1.4 percent from 0.9 percent earlier.
The NBFC, classified as an upper-layer entity under the Reserve Bank of India’s scale-based framework, recently wrapped up global investor roadshows that drew robust interest.
Market estimates suggest the IPO could fetch between ₹16,500 crore and ₹17,500 crore, making it the largest fundraising in the financial sector.
Proceeds are expected to fund growth over the next two to three years, with further capital raising planned via qualified institutional placements if needed.
As of March 31, 2025, Tata Capital was India’s third-largest NBFC with an AUM of about ₹2.2 trillion, recording over 28 percent average growth in the past three years. Its lending is spread across retail, SMEs, and corporate segments.
Its housing finance arm reported a loan book of ₹66,402 crore, up from ₹52,042 crore a year earlier, with housing loans accounting for 58 percent, loans against property 27 percent, and builder loans 15 percent.
The Tata group currently owns 95.6 percent of Tata Capital, including a 92.83 percent stake held by Tata Sons.
This will reduce to 86.5 percent after the IPO. IFC, which holds 1.7 percent, will divest half.
The offering will comprise 47.58 crore shares — including a fresh issue of 21 crore shares and an offer for sale of 26.58 crore shares. Tata Sons will offload 23 crore shares, while IFC will sell 3.58 crore.
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