Tata Capital IPO to Fuel Growth for Three Years, Says CEO

September 30, 2025: Tata Capital is set to make an initial public offering of a record-breaking ₹15,512 crore from the Tata group. The offer will result in an equity dilution of 11.21 percent, reducing promoter ownership from its current 95.8 percent. Tata Sons, as the largest shareholder currently owning 88 percent of the majority stake, will be the largest shareholder even after the listing.

Tata Capital IPO Pricing Strategy

Tata Capital IPO price band has been capped at ₹310 to ₹326 per share. This price is intentionally lower than the recent unlisted share market prices and even lower than the July rights price of ₹343. This is done to stimulate broader retail participation and to have a solid investor base from day one.

Tata Capital IPO Strengthened Capital Adequacy

Subsequently, Tata Capital’s capital adequacy ratio is expected to expand substantially to 22 percent from 17 percent as of the end of March 2025. This strengthened balance sheet will provide sufficient growth capital for two to three years without necessitating further equity dilution in the near term.

Tata Capital IPO Expansion and Operating Efficiency

The firm has expanded its branch network to close to 1,500 in the last three years. Ahead, expansion will slow its pace as earlier investments in distribution and technology are likely to yield greater efficiency. This transition should lower operating costs as a proportion of income, aiding profit levels.

Tata Capital IPO Borrowing Profile and Overseas Debt

Approximately 90 percent of the company’s debt comes from domestic sources, including banks and bond markets, while the remaining 10 percent is raised internationally. Tata Capital recently entered international markets with the launch of a $400 million senior unsecured bond, offering a 5.38 percent coupon as part of its $2 billion medium-term note program.

Tata Capital IPO Loan Book and Asset Quality

As a non-banking finance company with an outstanding loan book of ₹2.33 lakh crore, Tata Capital is among India’s top three players. Retail is heavily concentrated in the credit portfolio, which accounts for approximately 88-90% of all loans. Asset quality is strong, with diversification across lending sectors that enables effective risk management and scalability.

Outlook

The IPO is expected to not only strengthen Tata Capital financially but also cement its status as a leading NBFC with a diversified book, a strong focus on retail, and a steady source of funding. Gearing up with this new capital will provide ample space for the company to capitalize on opportunities to grow its business over the next three years.

REF: https://www.tatacapital.com/content/dam/tata-capital/pdf/investors-and-financial-reports/offer-documents/Offer_Documents/tata-capital-limited-rhp.pdf

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