Tata Capital IPO coming in October? 8 things to know about Tata Group’s Rs 17,200 crore issue
29 September 2025
Synopsis
Tata Capital is launching India’s largest financial-sector IPO on October 6, aiming for a valuation of around $18 billion. The Rs 17,200 crore issue includes a fresh share sale and OFS by Tata Sons and IFC. Proceeds will bolster Tier-1 capital, fulfilling RBI’s listing mandate. Strong FY25 profits and wide retail presence support the investment case, while unlisted shares trade 33% below last year’s peak.
Tata Capital, the flagship financial services arm of the Tata Group, is gearing up for India’s largest financial-sector IPO of 2025, with bidding set to open on Monday, October 6, and close on Wednesday, October 8. The company filed its red herring prospectus with Sebi and the bourses on September 26, moving a step closer to a listing that could value the NBFC at roughly $18 billion.
IPO size and structure
The offer comprises a fresh issue of 21 crore equity shares of Rs 10 each, alongside an offer for sale of 26.58 crore shares by existing shareholders. Tata Sons will offload 23 crore shares, while the International Finance Corporation (IFC) plans to divest 3.58 crore shares. The Anchor investor bidding is scheduled for Friday, October 3.
Grey market activity
Tata Capital shares have begun trading in the grey market at Rs 29 per share. Since the price band has not yet been announced, the actual premium over the issue price remains uncertain.
Record-breaking scale
At nearly Rs 17,200 crore, this IPO is expected to be the largest financial sector offering in India this year, highlighting the Tata Group’s significant presence in capital markets.
Use of proceeds
Funds raised will strengthen Tata Capital’s Tier-1 capital base, supporting onward lending and future capital requirements.
Live Events
RBI listing mandate
The IPO also fulfils the Reserve Bank of India’s mandate for upper-layer NBFCs to list within three years of meeting the prescribed thresholds.
Financial performance
Tata Capital reported a profit after tax (PAT) of Rs 3,655 crore in FY25 and serves over 70 lakh customers across 25 lending products.
Valuation outlook
With an anticipated valuation of around $18 billion, Tata Capital is positioned to become one of India’s most valuable non-banking financial companies.
Unlisted share performance
As of Sunday, September 28, unlisted shares of Tata Capital are trading at Rs 735, about 33% below the 52-week high of Rs 1,095 reached in September 2024.
Street analysts and investors are watching closely, with expectations running high given the IPO’s record scale and the Tata Group brand.
Also read | Swiggy shares down 21% so far in 2025. Will Rapido stake sale fuel Instamart’s next leg?
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Synopsis Tata Capital is launching India’s largest financial-sector IPO on October 6, aiming for a valuation of around $18 billion. The Rs 17,200 crore issue includes a fresh share sale and OFS by Tata Sons and IFC. Proceeds will bolster Tier-1 capital, fulfilling RBI’s listing mandate. Strong FY25 profits and wide retail presence support the investment case, while unlisted shares trade 33% below last year’s peak. Tata Capital, the flagship financial services arm of the Tata Group, is gearing up for India’s largest financial-sector IPO of 2025, with bidding set to open on Monday, October 6, and close on Wednesday, October 8. The company filed its red herring prospectus with Sebi and the bourses on September 26, moving a step closer to a listing that could value the NBFC at roughly $18 billion. IPO size and structure The offer comprises a fresh issue of 21 crore equity shares of Rs 10 each, alongside an offer for sale of 26.58 crore shares by existing shareholders. Tata Sons will offload 23 crore shares, while the International Finance Corporation (IFC) plans to divest 3.58 crore shares. The Anchor investor bidding is scheduled for Friday, October 3. Grey market activity Tata Capital shares have begun trading in the grey market at Rs 29 per share. Since the price band has not yet been announced, the actual premium over the issue price remains uncertain. Record-breaking scale At nearly Rs 17,200 crore, this IPO is expected to be the largest financial sector offering in India this year, highlighting the Tata Group’s significant presence in capital markets. Use of proceeds Funds raised will strengthen Tata Capital’s Tier-1 capital base, supporting onward lending and future capital requirements. Live Events RBI listing mandate The IPO also fulfils the Reserve Bank of India’s mandate for upper-layer NBFCs to list within three years of meeting the prescribed thresholds. Financial performance Tata Capital reported a profit after tax (PAT) of Rs 3,655 crore in FY25 and serves over 70 lakh customers across 25 lending products. Valuation outlook With an anticipated valuation of around $18 billion, Tata Capital is positioned to become one of India’s most valuable non-banking financial companies. Unlisted share performance As of Sunday, September 28, unlisted shares of Tata Capital are trading at Rs 735, about 33% below the 52-week high of Rs 1,095 reached in September 2024. Street analysts and investors are watching closely, with expectations running high given the IPO’s record scale and the Tata Group brand. Also read | Swiggy shares down 21% so far in 2025. Will Rapido stake sale fuel Instamart’s next leg? (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price ...moreless (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price ...moreless Distributors outdo banks, grab 70% of INR2.53 lakh crore mutual fund assets Metro, Vande Bharat are changing train travel, and the course of this wagon maker too How the land of 'snake charmers' is turning into millionaires’ hub A second CAG rap casts shadow over Godrej’s Greater Noida Golf Links project As IPOs flood the market, should Sebi tighten its control or bring smarter regulation? Auto ancillary sector: Re-rating on the cards? Some transformed better than others; 25 auto ancillary stocks, 8 probably better placed 1 2 3
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