Upc͏o͏m͏ing Ta͏͏͏ta͏͏ ͏Capit͏a͏l I͏PO͏ Highli͏͏͏g͏h͏ts͏ ͏U͏n͏͏tapp͏ed͏͏ Op͏po͏͏͏r͏t͏u͏n͏i͏͏t͏ie͏͏s in ͏M͏SM͏͏E ͏and R͏e͏t͏͏͏a͏i͏͏͏͏l L͏en͏͏d͏͏͏i͏͏ng͏͏ Wo͏r͏͏th͏͏ ͏₹͏1͏͏5,͏͏͏͏50͏0͏͏ C͏͏r͏͏͏

Mum͏͏b͏͏ai͏, ͏3 O͏ctober͏͏ 2͏0͏25:͏ ͏Ta͏ta͏ ͏C͏api͏tal͏͏ Lim͏it͏͏ed (T͏͏͏CL͏͏),͏ th͏͏e ͏͏flag͏s͏h͏i͏͏p finan͏͏c͏͏ial serv͏͏ic͏e͏s c͏͏om͏͏͏pan͏y ͏of͏ t͏͏h͏͏e Tat͏a Gr͏͏oup͏, ͏is͏͏͏ se͏t to͏ lau͏nch͏͏ ͏͏a͏ b͏͏͏ook-bu͏ilt ͏I͏nit͏ial͏͏͏͏ P͏u͏bli͏c O͏ffer͏ing͏ (IPO)͏ ͏fro͏m 6 t͏o͏͏ 8 Octob͏͏er ͏2͏0͏25, openin͏g ͏d͏oors ͏to sig͏nif͏i͏͏͏c͏a͏͏n͏͏͏͏t op͏͏͏p͏ort͏unit͏͏ies in ͏I͏ndia͏͏’͏͏s͏ gr͏owing M͏icr͏͏o,͏͏͏͏ ͏S͏mal͏͏l ͏and ͏M͏ed͏͏͏iu͏m͏ ͏En͏͏te͏r͏pris͏͏͏e͏s ͏(MSME)͏ a͏͏n͏d ͏retail ͏lending͏ ͏͏sector͏͏s. ͏͏͏͏͏Wit͏h͏ a͏͏ to͏͏ta͏l͏ ͏is͏sue͏ s͏ize ͏͏͏o͏f ͏͏₹15,͏5͏11.͏͏87 ͏͏c͏ro͏͏re͏, the͏ IP͏O͏͏͏ is p͏o͏i͏͏͏͏sed t͏͏o͏ st͏͏rengthen th͏͏e com͏pa͏n͏͏y͏’͏s T͏ie͏r-͏I ͏capit͏a͏l ͏bas͏e,͏ e͏͏nabl͏ing ͏fur͏t͏her ex͏pansi͏on͏ ͏into ͏high-pot͏͏ent͏ial͏ l͏en͏͏͏d͏͏ing s͏eg͏m͏en͏ts.

Tata Capital’s IPO Details Reveal ₹15,511.87 Cr Fresh Capital and Offer-for-Sale Opportunity

The Tata Capital IPO comprises a fresh issue of 21 crore shares aggregating ₹6,846 crore and an Offer-for-Sale (OFS) of 26.58 crore shares aggregating ₹8,665.87 crore. The IPO price band is fixed at ₹310-₹326 per share with a lot size of 46 shares. Retail investors will require a minimum investment of ₹14,996, while high-net-worth individuals can bid for larger lots ranging up to ₹10,04,732. Shares are scheduled to list on the BSE and NSE tentatively on 13 October 2025, providing a platform for expansion and capital utilisation.

MSME Lending Potential to Drive Growth: Tata Capital’s Diversified Product Suite

Tata Capital’s lending portfolio is strategically focused on MSMEs and retail customers, representing 88.5% of total gross loans as of March 2025. Retail finance contributes 62.3% of total loans, including personal, home, vehicle, education, and microfinance loans, while SME lending accounts for 26.2%, including term loans, equipment finance, supply chain finance, and cleantech projects. The company’s omni-channel model, spanning 1,496 branches across 1,102 locations and integrated digital platforms, enables wide penetration into under-served markets, facilitating both growth and risk diversification.

Robust Financial Performance Supports Lending Expansion in MSME and Retail Segments

Tata Capital has reported a 56% year-on-year revenue increase to ₹28,369.87 million and a 10% rise in profit after tax (PAT) to ₹3,655.02 million in FY2025. Total assets have grown to ₹2,484,650.1 million, supported by borrowings of ₹1,186,204 million. The company’s Return on Net Worth (RoNW) stands at 11.2% and Debt-to-Equity ratio at 6.60, reflecting strong capital efficiency and capacity to fund further MSME and retail lending operations.

Tata Capital’s Technology and Risk Management Framework Enables Low Credit Costs

With Gross Stage 3 loans at 1.5% and Net Stage 3 at 0.5%, Tata Capital maintains high asset quality. Advanced analytics, AI-driven collections, and digital underwriting platforms allow the company to sustain low credit costs while efficiently expanding retail and MSME portfolios. Its “phygital” model—integrating physical branches and digital channels—enhances reach, accelerates loan disbursement, and supports consistent growth in underpenetrated markets.

Strategic Merger with Tata Motors Finance Boosts Vehicle and SME Lending Opportunities

The merger with Tata Motors Finance Limited (TMFL) has strengthened Tata Capital’s vehicle finance operations, expanding access to commercial and passenger vehicles lending. TMFL’s contribution enhances the company’s SME and retail finance capability, aligning with broader infrastructure growth and government-supported rural recovery initiatives. This positions Tata Capital to serve sectors valued at ₹18.4 trillion, creating avenues for sustainable revenue growth in key lending segments.

The upcoming Tata Capital IPO is not only a capital-raising exercise but a strategic move to expand lending capacity across India’s MSME and retail segments, tapping into under-served markets. Augmented Tier-I capital will enable the company to diversify its loan portfolio, strengthen operational infrastructure, and capitalise on technology-driven lending. With robust risk management, advanced digital operations, and a strong legacy under the Tata Group, Tata Capital is positioned to efficiently deliver credit solutions, particularly in retail and MSME sectors, driving inclusive growth in India’s financial ecosystem.

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