Tata Capital IPO: This Tata Group company is going to launch an IPO - keep your money ready

Tata Capital IPO: In recent days, the stock market has been witnessing a downward trend, yet the IPO market remains active. Tata Capital, a key non-banking financial company (NBFC) under the Tata Group, is gearing up to launch its Initial Public Offering (IPO). The company has submitted its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). Let’s understand all the key details related to this IPO.

IPO Size and Share Details

Tata Capital’s IPO will offer a total of 47.58 crore shares, comprising:

• 21 crore fresh equity shares to be issued by the company

• 26.58 crore shares through Offer for Sale (OFS), including:

  • 23 crore shares by Tata Sons

  • 3.58 crore shares by International Finance Corporation (IFC)

According to sources, the IPO size could be $2 billion (approximately ₹16,800 crore), and the company’s valuation may reach $11 billion (around ₹92,400 crore).

IPO Timeline

• The company confidentially filed initial IPO documents in April 2025

• It received SEBI approval in July 2025

• An updated DRHP has now been filed to proceed with the next steps

Use of IPO Proceeds

Tata Capital plans to use the funds raised from this IPO to strengthen its Tier-1 capital base, enhancing its lending capacity and reinforcing its position in the fast-growing NBFC sector. This will support the company's growth strategy and increase its lending power.

Leading Investment Banks Managing the IPO

Several top investment banks are managing this mega IPO, including:

• Kotak Mahindra Capital

• Axis Capital

• Citi

• BNP Paribas

• HDFC Bank

• HSBC

• ICICI Securities

• IIFL

• SBI Capital

• JP Morgan

These institutions will play a crucial role in ensuring the IPO’s success.

Tata Capital’s Position in the NBFC Sector

Tata Capital is a major NBFC under the Tata Group, offering a range of financial services including personal loans, home loans, business loans, and vehicle financing. With a strong brand value and the credibility of the Tata Group, the company is an attractive option for investors. Through this IPO, Tata Capital aims to further expand its business operations.

Investor Advisory

While this IPO could be a significant opportunity in the stock market, investors should consider the following:

• Market Risk: Current volatility in stock markets calls for caution

• Company Performance: Analyze Tata Capital’s financials and future plans

• Financial Advice: Always consult a financial advisor before investing