Tata Capital, the financial services arm of the Tata Group, is set to launch a major initial public offering (IPO) worth approximately ₹17,200 crore starting October 6, 2025. The IPO marks one of the biggest public offerings this year and comes with the simultaneous divestment of stake by Tata Sons and the International Finance Corporation (IFC).
Overview of the Tata Capital IPO
The Tata Capital IPO is structured as a combination of a fresh equity issuance and an offer for sale (OFS) by existing shareholders. The total issue size comprises about 47.58 crore shares, with 21 crore shares issued as fresh equity to raise new capital, and 26.58 crore shares offered for sale by promoters and private equity investors. Among the selling shareholders, Tata Sons plans to divest up to 23 crore shares, while IFC will offload about 3.58 crore shares.
This IPO is significant as Tata Capital aims to boost its capital base to support future growth initiatives and loan portfolio expansion across retail, SME, and corporate lending segments. The fresh capital generated will primarily be used to strengthen Tier-1 capital and meet regulatory requirements set by the Reserve Bank of India (RBI).
Key Dates and Market Position
The Tata Capital IPO will open for institutional anchor investors on October 3, 2025, followed by public retail subscription from October 6 to October 8, 2025. The NSE and BSE are the designated stock exchanges for this listing. This IPO follows Tata Technologies’ market debut in late 2023, marking the Tata Group’s strategic expansion into the capital markets for its diversified non-banking financial company (NBFC) business.
Tata Capital is India’s third-largest NBFC, with assets under management valued around ₹2.2 trillion as of March 2025. It has posted robust revenue and profit growth in recent years and showed a profit of ₹2,492 crore in FY25, reflecting its expanding footprint in financial services. With an extensive branch network and digital reach, Tata Capital is well positioned to drive retail and commercial lending growth.
Tata Sons and IFC Stake Divestment
An important aspect of this IPO is the partial stake sale by key existing shareholders. Tata Sons, the parent conglomerate, intends to reduce its holding but will remain the majority stakeholder with over 86% ownership post-IPO. The IFC, a global development institution and investor, will decrease its minority stake by half while fully exiting through this IPO.
The divestment by Tata Sons and IFC is seen as a strategic move to unlock value while still retaining controlling interest in Tata Capital. This also allows new investors to participate in the growth story of one of India’s leading NBFCs, which serves a wide consumer base through home loans, vehicle financing, and other credit products.
Implications for Investors
The Tata Capital IPO offers a unique opportunity for investors to buy into a reputed NBFC backed by one of India’s most trusted business houses. Given the company’s strong fundamentals, widespread market presence, and future growth plans, market analysts expect strong subscription interest. The company’s detailed financials reflect a sustainable business model with consistent profitability and an expanding loan portfolio.
Retail investors will be keen to participate in the IPO which promises broad allocation and robust listing prospects. The IPO price band and final listing date will be announced soon as the company completes regulatory filings and roadshows targeted at generating investor enthusiasm both domestically and internationally.
Conclusion
The Tata Capital IPO, opening on October 6, 2025, with a size of ₹17,200 crore, represents a landmark event for the Indian financial sector. Combining fresh equity capital with the divestment by Tata Sons and IFC, this IPO is poised to create significant investor interest and enhance Tata Capital’s ability to lend and grow in both retail and corporate spaces. With strong backing and sound financials, the Tata Capital IPO is one of the most awaited public issues of 2025, set to impact the NBFC landscape profoundly.
This great opportunity for investors aligns with the broader ambitions of Tata Sons to consolidate its financial services businesses and unlock shareholder value while supporting India’s growing credit demand.
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