Tata Capital earnings estimated at a staggering $16 billion prior to IPO, International Finance Corporation poised for substantial profits
Tata Capital Files for Initial Public Offering (IPO)
Tata Sons-backed Tata Capital, a leading financial services platform under the Tata Group, has filed for an initial public offering (IPO) on August 4, 2025. The IPO aims to raise approximately 475.8 million equity shares with a face value of ₹10 each, including a fresh issue of about 210 million shares and an Offer for Sale (OFS) of around 265.8 million shares by existing shareholders, predominantly Tata Sons and the International Finance Corporation (IFC).
The IPO is driven by Tata Capital's growth ambitions and regulatory requirements, as the Reserve Bank of India (RBI) has classified Tata Capital as an "upper layer" non-banking financial company (NBFC). RBI mandates that such upper-layer NBFCs must list on stock exchanges by September 2025, to enhance transparency and compliance with regulatory norms.
As India's third-largest diversified NBFC, Tata Capital reported a net profit of ₹3,665 crore for the fiscal year ending March 2025, reflecting a 16% growth from the previous year. About 62% of its loan book is retail lending, indicating a strong focus on individuals. The proceeds from the fresh issue will primarily be used to augment Tata Capital’s Tier-1 capital base to support future lending and expansion, ensuring sustainable growth in a competitive NBFC environment. A part of the funds will also cover IPO-related expenses.
Key investment banks, including Kotak Mahindra Capital, BNP Paribas, and Citigroup Global Markets, are managing the IPO process, with MUFG Intime India Pvt. Ltd appointed as the registrar. The expected valuation of Tata Capital is approximately $16 billion, positioning it as a major player in the financial services sector going public in India in 2025.
Tata Capital's Private Equity Fund Platforms
Tata Capital also houses two private equity fund platforms: Tata Capital Growth and Tata Capital Healthcare. These platforms focus on investing in growth-stage businesses across various sectors, aiming to support companies with high-growth potential.
Outside Investments
Meanwhile, Playbook Partners, an investor, secured a $30-million investment in Renee Cosmetics' Series C round, led by Playbook Partners. Renee Cosmetics is another company that has recently undergone changes in its planned IPO, with the proposed IPO size being reduced, although the exact new size is not specified. The IPO of Bluestone Jewellery, another company, has also seen a reduction in valuation ask, but the new valuation is not disclosed, potentially impacting several investors.
This IPO is significant for Tata Capital as it aligns the company with RBI’s regulatory framework while enabling it to strengthen its capital base and accelerate growth, marking a strategic milestone for Tata’s NBFC flagship. The specific timing or details of Tata Capital's IPO are not provided at this time.
Summary of the Tata Capital IPO details:
| Detail | Description | |-------------------------------|-----------------------------------------------| | Parent Company | Tata Group | | IPO Filing Date | August 4, 2025 | | Total Shares Offered | ~475.8 million (47.58 crore) shares | | Fresh Issue | ~210 million (21 crore) shares | | Offer for Sale (OFS) | ~265.8 million (26.58 crore) shares | | Major Sellers | Tata Sons (23 crore shares), IFC (3.58 crore) | | Use of Proceeds | Tier-1 capital augmentation, onward lending, expenses | | Loan Book Size | ₹2.26 lakh crore (March 2025) | | Profit (FY 2024-25) | ₹3,665 crore | | Regulatory Driver | RBI mandate for 'upper layer' NBFCs to list by September 2025 | | Expected Valuation | Approximately $16 billion | | Lead Managers | Kotak Mahindra Capital, BNP Paribas, Citigroup Global Markets |
Investors might watch Tata Capital's Initial Public Offering (IPO) considering the company's strong focus on business expansion, as the proceeds from the fresh issue will mainly be used to augment its Tier-1 capital base for future lending and growth. Tata Capital also manages two private equity fund platforms, Tata Capital Growth and Tata Capital Healthcare, which invest in growth-stage businesses across various sectors, highlighting its commitment to investing in businesses with high-growth potential.
