Tata Capital IPO Opens October 6, Targets ₹15,500 Crore with Green Finance and Digital Expansion Focus

Mumbai, 3 October 2025: Tata Capital Ltd, the financial services subsidiary of the Tata Group, is set to launch its highly anticipated initial public offering (IPO) on October 6, spotlighting green financing and digital innovation as central pillars of its growth strategy. The move comes amid a rising push for sustainable finance in India, positioning Tata Capital to capitalise on both technological and environmental trends.

Tata Capital Strengthens Sustainable Finance Portfolio to ₹18,000 Crore, Expands at 31.8% CAGR

Following the 2024 merger with its IFC-backed subsidiary Tata Cleantech Capital, Tata Capital’s cleantech and infrastructure finance book has grown significantly, reaching ₹18,000 crore by FY25. The division has expanded at a robust 31.8 per cent compound annual growth rate (CAGR) over the past two years. The integration of cleantech assets is expected to enhance the company’s capacity to mobilise global climate capital while supporting India’s renewable energy transition.

Cleantech Financing Surpasses 22,400 MW Across Renewable Projects, Reinforcing High-Quality Asset Base

Over the last decade, Tata Capital’s cleantech division has financed over 500 renewable energy projects, sanctioning more than 22,400 MW of solar, wind, biomass, and small hydro capacity. Managing director and CEO Rajiv Sabharwal highlighted that the portfolio combines rapid expansion with secured, high-quality assets, creating one of the cleanest books among non-banking financial companies (NBFCs). This positions the firm as a critical participant in supporting India’s climate objectives.

Digital Innovation Reduces Turnaround Times, Net NPA Stands at 1% Post Tata Motors Finance Acquisition

Tata Capital is leveraging technology to underpin its next growth phase. The company has introduced generative AI (GenAI) in underwriting working capital loans, significantly accelerating credit appraisal processes. Its granular loan book and low unsecured exposure, coupled with a multi-product strategy, balance growth with risk management. Chief financial officer Rakesh Bhatia noted that post the Tata Motors Finance acquisition, the net non-performing assets (NPA) ratio stands at 1 per cent, and 0.6 per cent excluding the acquisition. Capital adequacy is projected at 22 per cent post-IPO.

IPO to Raise ₹15,500 Crore, Price Band Set at ₹310-₹326 per Share with 46-Share Minimum Lot

Tata Capital IPO opens on 6 October and closes on 8 October, offering a price band of ₹310 to ₹326 per share and a minimum bidding lot of 46 shares. The public issue is expected to raise over ₹15,500 crore, making it one of the largest IPOs in recent years. This positions Tata Capital prominently in the NBFC sector while underscoring its ambition to expand both domestic and renewable finance operations.

Positioned to Drive India’s Energy Transition Amid 2070 Net-Zero Targets

India’s net-zero ambitions for 2070 create a significant runway for green financing, with Tata Capital uniquely placed to capitalise on these opportunities. The company’s strategic focus on housing, consumer lending, and small and medium enterprises (SMEs) complements its clean energy initiatives, reinforcing its role in supporting sustainable economic growth.

Tata Capital’s IPO highlights the growing convergence of sustainable finance and digital innovation in India, reflecting broader trends in renewable energy financing, technology adoption in NBFCs, and strategic consolidation to strengthen growth potential across key sectors.

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