Unlocking Investment Opportunities in the Tata Capital IPO

The Tata Capital IPO: A Landmark Offering in India's Financial Sector

The Tata Capital IPO, set to open for retail investors on October 6, 2025, is one of the most anticipated public offerings in the Indian financial sector this year. The Tata Group’s key financial services arm plans to raise an estimated ₹17,200 crore through a combination of fresh equity and an offer for sale. This IPO marks an important milestone for Tata Capital, which has steadily expanded its financial footprint since beginning lending operations in 2007.

IPO Details and Dates

Tata Capital’s IPO will open from October 6 to October 8, 2025. The anchor investors’ portion will be subscribed earlier on October 3. The offer consists of a fresh issue of up to 210 million shares with a face value of ₹10 each. Additionally, there will be an offer for sale by existing shareholders of approximately 265.8 million shares. Combined, the total number of shares offered exceeds 475 million, making it one of the largest IPOs in India’s financial services sector to date.

The company is expected to list on both BSE and NSE around October 13, 2025. The allotment of shares will be finalized on October 9. Refunds will initiate by October 10, with credit to investors’ demat accounts expected the same day.

Business Overview of Tata Capital

Tata Capital Limited is a mainstay financial services company within the Tata Group. It is classified as an upper-layer Non-Banking Financial Company (NBFC) by the Reserve Bank of India (RBI). The company serves over 7 million customers with a diversified portfolio of more than 25 lending products. These products cater to salaried individuals, entrepreneurs, SMEs, and corporates. The firm also engages in wealth management, third-party product distribution such as insurance and credit cards, and private equity fund management.

As of 2024, Tata Capital held assets under management worth ₹1,58,479 crore. The company’s growth trajectory is reflected in its rapidly expanding loan book and strong financial health. This positions it favorably amidst India’s growing retail credit and MSME lending markets.

Financial Performance Highlights

Tata Capital’s robust financial metrics affirm its sustained growth and profitability. The loan book increased by approximately 35% from ₹1,16,789 crore (FY 2022-23) to ₹1,57,761 crore (FY 2023-24). Meanwhile, profit after tax grew by 37%, which is evidence of effective management and increased operational efficiency.

Additional highlights include:

• Total assets rising from ₹1,35,626 crore in March 2023 to ₹1,76,693 crore in March 2024.

• Earnings per share (EPS) improvement from ₹6.47 to ₹6.78.

• Gross NPA percentage improving marginally from 1.78% to 1.71%, showcasing healthy asset quality.

  
  

The company also reported a 16% rise in Profit After Tax (PAT) to ₹3,665 crore in the 2024 financial year. This growth occurred amid increasing operational scale and controlled credit costs.

Why Tata Capital IPO is Significant

The IPO represents a dual opportunity. It raises fresh capital to fuel business expansion and allows existing shareholders like Tata Sons to partially exit via an offer for sale. The fresh issue aims to raise around ₹5,000 crore to strengthen the capital base for future growth. Meanwhile, the offer for sale could amount to ₹10,000 crore, reflecting shareholder confidence and investor interest.

The Tata Group’s backing lends immense credibility. Tata Sons owns approximately 92.8% of Tata Capital, with substantial investments made over recent years totaling over ₹6,000 crore. This underscores their commitment to scaling operations.

Market Context and Growth Potential

India’s financial services sector is poised for significant growth. Retail credit is expected to grow at a 13-15% CAGR through 2027. The NBFC sector, which is pivotal to retail and MSME lending, is projected to expand at 15-17% CAGR in the same period. Tata Capital’s presence in these segments, coupled with government schemes promoting credit access and formalization of MSMEs, places the company in a strong position to capitalize on these trends.

The company’s comprehensive product suite and customer-centered approach align with growing financial inclusion and credit penetration. This alignment drives a positive outlook for performance post-IPO.

Investor Considerations

For investors, the Tata Capital IPO offers exposure to a trusted Tata Group entity with consistent revenue growth and profitability. The price band is yet to be finalized, but market buzz places it between ₹375 and ₹400 per share. This is substantially below its current unlisted market price, which trades around ₹1,100 per share. This indicates potential upside upon listing.

Investors should note that the IPO’s lot size details will be announced closer to the offer date. Pre-application facilities will enable early bidding, and applying via multiple demat accounts is allowed, promoting wider participation.

Final Thoughts

The Tata Capital IPO is a landmark offering in India’s financial services sector. It is backed by a strong parent group and impressive financial performance. The planned ₹17,200+ crore raise will support growth initiatives and provide an attractive investment avenue amid a booming NBFC market. With the IPO opening on October 6, 2025, I believe investors keen on stable financial plays with long-term growth potential should closely watch and consider subscribing to this promising Tata Group IPO.

Conclusion

In conclusion, the Tata Capital IPO is not just another public offering; it represents a significant opportunity for investors. The backing of the Tata Group, combined with the company's strong financial health and growth potential, makes it a compelling choice. I encourage anyone interested in current global events and breaking news to stay informed about this IPO and the broader implications it may have on the financial sector.