Tata Capital eyes $16.5 billion valuation with $1.85 billion IPO; early October launch expected

Tata Capital, the financial services arm of the Tata Group, is gearing up for one of India’s most anticipated IPOs of 2025, targeting a valuation of $16.5 billion (approximately ₹1.37 lakh crore) through a $1.85 billion (₹15,400 crore) public offering. The IPO is expected to hit the markets in early October, marking a significant milestone in the Tata Group’s strategy to unlock value across its diversified portfolio.

The offering will comprise a mix of fresh issue and offer-for-sale (OFS) components, with Tata Sons likely to dilute a portion of its stake to meet regulatory norms and broaden the investor base. Market insiders suggest that the IPO will be split into ₹10,000 crore of fresh equity and ₹5,400 crore of OFS, making it one of the largest financial sector listings in India.

Tata Capital IPO – Key Details and Structure

Tata Capital offers a wide range of financial services including retail and corporate lending, wealth management, investment banking, and infrastructure finance. The company has grown rapidly over the past five years, riding on India’s credit expansion and digital transformation in financial services.

According to its FY25 financials, Tata Capital reported a net profit of ₹3,420 crore, up 28% year-on-year, with assets under management (AUM) crossing ₹1.25 lakh crore. The company’s return on equity (ROE) stood at 16.4%, while net interest margin (NIM) improved to 5.1%, reflecting strong operational efficiency.

Tata Capital Financial Performance – FY23 to FY25

The IPO is expected to attract strong interest from domestic and global institutional investors, given Tata Capital’s brand strength, diversified business model, and robust financial metrics. Analysts believe the listing could serve as a benchmark for other NBFCs looking to tap public markets.

The proceeds from the fresh issue will be used to bolster the company’s capital adequacy, expand its lending book, invest in digital platforms, and support inorganic growth opportunities. Tata Capital is also eyeing strategic partnerships in fintech and insurance to deepen its ecosystem.

IPO Objectives – Tata Capital’s Strategic Roadmap

Tata Sons, which owns 100% of Tata Capital, will retain majority control post-listing but is expected to reduce its stake to comply with RBI’s guidelines on ownership in systemically important NBFCs. The IPO will also help Tata Capital meet its long-term goal of becoming a full-service financial conglomerate.

Market experts have compared Tata Capital’s IPO to recent listings such as LIC, Paytm, and HDFC AMC, noting that the company’s fundamentals and brand equity position it for a strong debut. The grey market premium (GMP) is already hovering around ₹140–₹160 per share, indicating bullish sentiment among retail investors.

Peer Comparison – Financial Sector IPOs

Social media platforms have seen a surge in IPO-related discussions, with hashtags like #TataCapitalIPO, #BiggestNBFCListing, and #TataGroupBuzz trending across investor forums. Retail investors are closely tracking the price band announcement, lot size, and anchor investor participation.

Public Sentiment – Tata Capital IPO Buzz

Industry veterans believe Tata Capital’s IPO could set the tone for a new wave of financial sector listings, especially as NBFCs gain prominence in India’s credit landscape. With strong fundamentals, brand trust, and strategic clarity, the offering is poised to be a marquee event in India’s capital markets.

Disclaimer: This article is based on publicly available financial disclosures, market commentary, and expert analysis. It does not constitute investment advice or a recommendation. All quotes are attributed to public figures and institutions as per coverage. Readers are advised to consult certified financial advisors before making investment decisions.