Tata Capital, the non-banking arm of the Tata Group, is preparing to launch the largest IPO of 2025. Investors have been eagerly awaiting this IPO for some time. The company announced the launch of its IPO on September 26, and since then, the excitement is quite high among investors.
The IPO is scheduled to start on October 6, 2025, and close on October 8, 2025. According to reports, this IPO is aimed at raising over Rs. 17,200 crore, comprising a fresh issue of shares and an ‘Offer for Sale’ by existing shareholders.
The declaration and the reports indicate that the Tata Group IPO will consist of a fresh issue of 21 crore shares and an ‘Offer for Sale’ of 26.58 crore shares. Among the offers for sale, Tata Sons will divest 230 million shares, and the IFC will sell 35.8 million shares. The company is targeting a post-money valuation of approximately $18 billion, making it one of the highest-valued NBFCs in India.
The IPO proceeds will primarily be used to strengthen the Tier-1 capital of Tata Capital, enabling onward lending and meeting any future capital requirements. Tata Capital earned a PAT of Rs. 3,655 crore in FY25 and serves over 7 million customers through 25 lending products, establishing it as an operationally strong organization financially. This listing also fulfills the criteria set by the RBI for upper-layer NBFCs to be listed on stock exchanges within a span of three years.
According to some reports, Tata Capital has already started trading in the grey market at Rs. 29, even before the official price is determined. It is expected to be the largest IPO ever in the Indian financial sector, having attracted attention from both retail and institutional investors.
Analysts note that the scale of the issue, combined with Tata Capital’s strong performance, could set a benchmark for NBFC listings. The focal point of interest is the allocation of anchor investors, as this typically reflects the earliest institutional confidence in the issue and sets expectations for the listing's performance.
Besides, the funds raised through IPO would shore up capital adequacy on record and thereby assist Tata Capital in fulfilling its growth plans in an aggressive financial services space.
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While Tata Capital offers a compelling IPO for investors seeking exposure to a leading NBFC with a strong parent group, consideration should also include market volatility, interest rate trends, and prevailing conditions. The goodwill in the grey market is certainly the most relaxing and attractive aspect, but the actual returns will depend on how the issue performs at listing and ultimately on the company's growth.