Tata Capital, a leading non-banking financial services (NBFC) firm in India and a subsidiary of Tata Sons, has approved plans for an initial public offering (IPO) consisting of a fresh issue of 23 crore equity shares and an offer-for-sale by existing shareholders. The company also announced a rights issue worth ₹1,504 crore. The IPO aligns with the Reserve Bank of India’s (RBI) mandate for ‘upper layer’ NBFCs to list by September 2025.
Tata Capital, a leading non-banking financial company (NBFC) in India and a subsidiary of Tata Sons, has approved plans for an initial public offering (IPO) comprising a fresh issue of 23 crore equity shares and an offer-for-sale by existing shareholders. The company has also lined up a ₹1,504 crore rights issue for existing shareholders as part of its fundraising efforts.
The IPO marks a significant milestone for Tata Capital, which was established in 2007 and offers a broad range of financial services, including personal, business, and home loans. Notably, this would be the first IPO by a Tata Group company since the highly successful listing of Tata Technologies in 2023.
IPO in Line with RBI Regulations
Tata Capital’s decision to go public aligns with the Reserve Bank of India’s (RBI) requirement for ‘upper layer’ NBFCs to list within three years of being notified. The deadline for this mandate is September 2025, making the IPO a strategic move for the company. Tata Capital Financial Services, which merged with Tata Capital in January 2024, is among the firms on the RBI’s ‘upper layer’ list.
Bajaj Housing Finance, another firm from the same RBI classification, had an impressive market debut on September 16, 2024, closing 135% above its IPO issue price.
Strong Backing from Tata Sons
As of March 31, 2024, Tata Capital had an assets under management (AUM) value of ₹1,58,479 crore, according to a report by Crisil Ratings. Tata Sons directly owns 92.83% of the company, with the remaining shares held by other Tata Group entities and trusts. Over the last five fiscal years, Tata Sons has infused ₹6,097 crore into Tata Capital, underscoring the group’s commitment to expanding its financial services footprint.
Following the IPO announcement, shares of Tata Investment surged by 8%, trading at ₹6,218 per share. The upcoming listing is expected to provide additional capital for Tata Capital’s growth while allowing existing investors to partially exit their holdings.
With its strong financial position and regulatory compliance, Tata Capital’s IPO is anticipated to attract significant investor interest in the Indian market.
