Tata Capital inches one step closer to its ₹13,371cr IPO
What's the story
Tata Capital, a leading non-banking financial company (NBFC) in the Tata Group, has filed an updated Draft Red Herring Prospectus (DRHP) with Securities and Exchange Board of India (SEBI). The move comes as the Reserve Bank of India's (RBI) September 2025 deadline for launching an initial public offering (IPO) nears. The IPO will see Tata Sons offloading 23 crore shares and the International Finance Corporation (IFC) selling another 3.58 crore stocks.
Offer details
Total offer size stands at 47.58cr equity shares
Along with the offer for sale (OFS) by Tata Sons and IFC, the upcoming IPO will also feature a fresh issue of up to 21 crore shares. The total offer size, according to the updated DRHP, stands at a whopping 47.58 crore equity shares. If priced at ₹281 per stock like its rights issue in March, the IPO size could be around ₹13,371 crore.
Stake
A look at the DRHP
The updated DRHP shows that promoters own 95.5% stake in the company with Tata Sons holding an 88.6% stake. Other stockholders include TMF Holdings, Tata Investment Corporation, IFC, Tata Motors and Tata Chemicals.
Regulatory compliance
RBI's deadline for Tata Capital's listing
As per the NBFC Scale-Based Regulations, Tata Capital's shares must be mandatorily listed on stock exchanges within three years of being identified as an upper-layer NBFC by the RBI. This means they have to be listed on or before September 30, 2025. In January, the RBI had identified 15 upper-layer NBFCs for FY24-25, including Tata Capital.
Pre-IPO performance
Strong financial results ahead of IPO
Ahead of its listing, Tata Capital has reported strong financial results. For the March 2025 quarter, the company's consolidated PAT jumped 31% year-on-year to ₹1,000 crore, while revenue from operations surged nearly 50% to ₹7,478 crore. For FY25 as a whole, PAT increased to ₹3,655 crore from ₹3,327 crore in FY24 and total revenues grew from ₹18,175 crore to ₹28,313 crore.