New Delhi’s financial corridors are abuzz with excitement as Tata Capital gears up for its monumental initial public offering (IPO) in late September. This is no ordinary IPO; it’s a \(2 billion venture (approximately Rs 17,200 crore) that eyes a staggering valuation of \)11 billion. Such a significant move signals not just Tata Capital’s ambition but also India’s burgeoning financial landscape.

A Resilient Giant Takes the Stage

Poised to explode onto the public market stage, Tata Capital is expected to list its colossal IPO by September 30. The offering will comprise a substantial 47.58 crore shares, with 21 crore being fresh equity and the remaining 26.58 crore an offer for sale. This makes it a tour de force in India’s financial sector—potentially the largest in recent memory.

Strategic Moves and Future Directions

Tata Sons and International Finance Corporation (IFC) are significant players in this financial theater. Tata Sons currently holds 88.6% of Tata Capital, and they plan to release 23 crore shares. Meanwhile, IFC will dispose of 3.58 crore shares. As stated in The Economic Times, the proceeds from this IPO are intended to bolster Tata Capital’s Tier-1 capital base, creating a stable foundation for further growth.

Meeting RBI Mandates with Precision

This IPO doesn’t solely represent financial aspirations; it aligns with regulatory mandates from the Reserve Bank of India, which requires upper-layer non-bank lenders to transition to public entities within three years of such classification. Tata Capital, marking this transition, aims to comply within a year of their official classification in September 2022.

Financial Performance Beyond Reproach

With an impressive gross loan figure standing at Rs 2.26 lakh crore as of March 2025, Tata Capital has showcased a remarkable 37% CAGR between FY23 and FY25. Their profit after tax surged to Rs 3,646.6 crore for FY25, showcasing robust growth. Asset quality has remained steadfast, with net bad loans impressively low at 0.8%.

Reinforcing Market Presence and Influence

Founded in 2007, Tata Capital is not just an average NBFC; it’s an institution serving over seven million customers with diverse financial products, from wealth management services to private equity fund sponsorships. The forthcoming days hold immense potential, with many watching as the company journeys into this new chapter of public life, reflecting both promise and excitement.

Let us keep our eyes peeled for the unfolding of this financial symphony as Tata Capital plays its next big move on the global stage.