Drashti Chheda Tata Capital has officially taken its first step toward going public. On August 4, 2025, the Tata Group’s non-banking financial arm submitted its draft papers to SEBI to raise capital through an initial public offering. The IPO will include both a fresh issue of shares and an offer for sale, aimed at strengthening the company’s core capital and fueling its lending operations.
The numbers in the draft document are significant. Tata Capital plans to issue over 47.58 crore equity shares, each with a face value of ₹10. This includes a fresh issue of 21 crore shares and an offer for sale of more than 26.58 crore shares. Tata Sons, the parent company, is set to offload up to 23 crore shares, while the International Finance Corporation will sell about 3.58 crore shares.
Proceeds from the IPO are earmarked to support future lending activities. Tata Capital has stated that the capital raised will be used to boost its Tier I capital base, which will help meet growing demand in the lending space.
The company’s financial performance shows clear momentum. In FY25, Tata Capital reported a net profit of ₹3,664.66 crore, a rise from ₹3,150.21 crore in the previous fiscal year. Revenue from core operations increased to ₹28,312.74 crore, while its net worth stood at ₹32,587.82 crore as of March 2025.
Major financial institutions are backing the issue. Kotak Mahindra Capital, Axis Capital, BNP Paribas, Citigroup, and HDFC Bank are leading the offer as book-running managers. MUFG Intime India is acting as the registrar.
This IPO is more than a capital-raising exercise. It’s a signal that Tata Capital is preparing for a larger role in India’s financial sector. With a track record of profitability, growing market presence, and the backing of the Tata brand, the company is expected to attract strong interest from both institutional and retail investors.
As the listing process unfolds, details like the IPO price band and date will become available. But the message is already clear. Tata Capital is gearing up for its next chapter, and the public now has the opportunity to be part of its journey.
