Tata Capital has revised its IPO valuation target to $18–20 billion, significantly up from the earlier estimate of $11 billion. The company is now expected to raise ₹17,200 crore (~$2.2 billion) in its September IPO, solidifying its position among India’s top NBFCs amid robust investor demand and regulatory momentum.
Tata Capital Ltd, is a leading Indian non-banking financial company (NBFC) offering a wide range of financial products, including personal loans, housing finance, SME lending, equipment financing, and wealth services. It operates under the umbrella of Tata Sons, the flagship holding company of the Tata Group, one of India’s oldest and most diversified conglomerates.
As per the updated draft red herring prospectus filed with SEBI, Tata Capital is now aiming for a valuation between $18 billion and $20 billion for its IPO, up from the previously expected $11 billion. The IPO, expected in early September, is set to raise approximately ₹17,200 crore (~$2.2 billion), comprising a mix of primary and offer-for-sale components.
Tata Sons will offload around 23 crore equity shares in the offer, while co-investor International Finance Corporation (IFC) plans to exit its stake of roughly 3.6 crore shares. The capital raised through the fresh issue will be used to expand the company’s lending book, improve capital adequacy, strengthen digital infrastructure, and scale customer acquisition across both urban and semi-urban markets.
Also Read: Breaking Down Tata Capital’s $2B IPO and Its Market Impact
The IPO also helps Tata Capital meet a regulatory requirement from the Reserve Bank of India (RBI), which mandates that all NBFCs classified as “upper-layer” under the scale-based regulatory framework must be listed by the end of September 2025. The company received SEBI’s approval in June, giving it the green light to proceed with the offering.
If successful, the listing would place Tata Capital as the fourth-largest publicly listed NBFC in India, behind Bajaj Finance ($69 billion market cap), Bajaj Finserv ($38 billion), and Jio Financial Services (~$23 billion). Tata Capital currently serves more than 35 lakh customers through a national footprint of over 400 branches, with an AUM (assets under management) crossing ₹1.5 lakh crore as of FY25.
Also Read: SEBI Approval Brings Tata Capital a Step Closer to Mandatory Listing
Analysts view the revised valuation as a sign of strong investor confidence, particularly following recent successful debuts in the financial space. The market is witnessing renewed IPO momentum in 2025, with total projected capital raised through new issues expected to exceed ₹2.5 lakh crore.
For Tata Capital, a successful IPO not only enhances visibility but also positions it to compete more aggressively in the high-growth segments of retail and SME lending. With rising demand for credit, digital-first distribution, and the Tata brand’s credibility, the company is seen as a long-term play in India’s evolving financial landscape.
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