Tata Capital IPO 2025: IFC to Book Multibagger Gains from Stake Sale

Tata Capital IPO 2025 Size, IFC Stake Sale, and Growth Outlook

The much-anticipated Tata Capital IPO 2025 has taken center stage as the International Finance Corporation (IFC) prepares to unlock massive value through its stake sale. IFC, which first invested in Tata Capital’s cleantech arm back in 2011, is set to realize multibagger gains by offloading 3.58 crore shares in the upcoming ₹17,000 crore ($2 billion) public issue.

This listing, slated for early October following RBI’s extension of the deadline, is positioned to be India’s largest financial sector IPO. For investors, Tata Capital IPO 2025 represents a significant opportunity in the fast-growing NBFC space, strengthened by a clean energy finance portfolio and consistent loan book growth.

IFC’s Investment Journey and Stake Sale

In 2011, IFC invested in Tata Capital’s cleantech business at an adjusted price of ₹25 per share, translating to a total investment of about ₹179 crore. Over the years, this partnership helped establish Tata Cleantech Capital Ltd. (TCCL), which went on to finance more than 500 renewable and sustainable projects across solar, wind, water treatment, and electric mobility.

Following the merger of TCCL into Tata Capital, IFC currently holds 7.16 crore shares, representing 1.8% of the company. In the IPO, IFC will sell 3.58 crore shares through the offer for sale (OFS). At the rights issue benchmark price of ₹343 per share, IFC’s stake is valued at ₹2,458 crore—translating to a notional profit of nearly ₹2,278 crore, or 13× returns.

Tata Capital IPO 2025: Structure and Use of Proceeds

The IPO will comprise a fresh issue of about 21 crore shares along with an OFS of 26.58 crore shares. While IFC is selling part of its holding, promoter Tata Sons—who currently holds 88.6% of Tata Capital—will offload around 23 crore shares.

Proceeds from the fresh issue will be used to strengthen Tier-I capital, expand lending capacity, and align with the Reserve Bank of India’s mandate for upper-layer NBFCs to list. This ensures compliance while also funding growth ambitions in retail and infrastructure financing.

Clean Energy and Cleantech Growth

One of Tata Capital’s key differentiators lies in its clean energy portfolio. The company has sanctioned financing for more than 22,400 MW of clean energy projects, and its infrastructure finance loan book surpassed ₹18,000 crore in FY25. This segment has grown at a 32% CAGR over the past two years, reflecting strong demand for renewable and sustainable financing.

Through this portfolio, Tata Capital is positioned not just as a financial powerhouse but also as a significant contributor to India’s energy transition goals. This strengthens the long-term investment case for Tata Capital IPO 2025.

Investor Outlook: Why the IPO Matters

Analysts highlight that the timing of this IPO is favorable, with strong market appetite for financial sector listings. IFC’s successful exit underscores the value creation potential within Tata Capital’s business. For retail and institutional investors, the combination of stable NBFC operations, robust clean energy financing, and promoter credibility makes the issue particularly attractive.

With its size, diversified business model, and regulatory push backing the listing, Tata Capital IPO 2025 is expected to draw significant demand. Investors looking for exposure to India’s expanding NBFC sector and the clean energy financing story may find this IPO a meaningful entry point.

Conclusion: Tata Capital IPO 2025 as a Landmark Listing

The upcoming IPO not only cements Tata Capital’s position as a major financial player but also signals the success of long-term institutional partnerships like IFC’s. With multibagger returns for early backers and a compelling growth outlook for new investors, Tata Capital IPO 2025 is set to be one of the most closely tracked financial listings of the year.

For market watchers, this IPO represents both a compliance milestone under RBI regulations and a growth story driven by India’s transition toward sustainable finance.