Tata Capital IPO.

Tata Capital IPO Opening Date: Tata Capital, the non-banking financial arm of the Tata Group, is gearing up for its much-awaited initial public offering (IPO), which is set to open on Monday, October 6, 2025, and close on Wednesday, October 8, 2025. The anchor book will be launched earlier on Friday, October 3, 2025, according to a disclosure made to the stock exchanges.

The issue size has been pegged at around $2 billion (Rs 17,200 crore), with the company eyeing a valuation of nearly $18 billion, according to a PTI report citing sources. If successful, this will be the largest public issue in India’s financial sector so far.

IPO Structure

The proposed issue comprises a total of 47.58 crore shares, including a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares.

Tata Sons, which currently holds an 88.6% stake in Tata Capital, will offload about 23 crore shares.

International Finance Corporation (IFC), which owns 1.8%, will sell 3.58 crore shares.

Proceeds from the fresh issue will be used to bolster Tata Capital’s Tier-1 capital base, helping the NBFC meet future capital requirements, including lending operations.

Price Band, GMP, and Lot Size

The price band for the IPO has not been announced yet and will be decided closer to the launch date.

The grey market premium (GMP) will also be known once the price band is finalised.

Details of the lot size are expected to be announced soon, possibly next week.

Regulatory Push and Sector Context

This IPO comes as part of the Reserve Bank of India’s mandate, which requires all upper-layer NBFCs to be listed within three years of classification. Tata Capital was identified as an upper-layer NBFC in September 2022.

The move mirrors similar listings in the sector. HDB Financial Services went public in June 2025 with a Rs 12,500 crore issue, while Bajaj Housing Finance made a blockbuster debut in September 2024, doubling investors’ money on listing day with a 135% premium.

Business and Financials

Founded in 2007, Tata Capital today serves over 70 lakh customers with a wide portfolio of more than 25 lending products, catering to individuals, SMEs, entrepreneurs and corporates. Apart from lending, it also distributes third-party products like insurance and credit cards, provides wealth management services, and acts as a sponsor and investment manager for private equity funds.

For FY25, Tata Capital reported a profit after tax (PAT) of Rs 3,655 crore, compared to Rs 3,327 crore in the previous year. Its revenue jumped to Rs 28,313 crore in FY25, up from Rs 18,175 crore in FY24.

Lead Managers

The IPO is being managed by a strong line-up of book-running lead managers, including Axis Capital, Kotak Mahindra Capital, BNP Paribas, HDFC Bank, HSBC Securities, Citigroup Global Markets, ICICI Securities, IIFL Capital, SBI Capital Markets and J P Morgan India.

If successful, Tata Capital’s IPO will mark the second market debut by a Tata Group company in recent years, after Tata Technologies listed in November 2023.