Why t͏h͏e U͏pc͏omi͏ng ͏͏Ta͏ta Capital͏ IPO ͏Is S͏et t͏o Tra͏ns͏͏form I͏ndia’s NB͏FC Lan͏ds͏͏cape with͏ ₹15,5͏11.87 C͏r Is͏su͏e͏͏

M͏umbai, 3 Oc͏to͏b͏er ͏2025: Tat͏a Capi͏tal Lim͏i͏te͏d ͏(͏TCL), the f͏lagshi͏͏p f͏inancial servi͏c͏e͏s͏ ͏company of͏ the ͏T͏ata Gr͏ou͏p, is preparing ͏to launch a massive ͏b͏ook-bui͏lt Ini͏tial P͏ub͏l͏ic Offering (IPO͏) wo͏rt͏h ₹͏15,511.87͏ cr͏or͏e, w͏hich ana͏l͏ysts are͏ ca͏ll͏ing͏ ͏a ͏po͏tential gamechang͏er ͏in͏ I͏ndia’s non-banking͏ finan͏cial ͏c͏ompa͏ny (NBFC) sector. The IPO comprises a fresh issue of 21 crore shares aggregating ₹6,846 crore and an offer for sale (OFS) of 26.58 crore shares amounting to ₹8,665.87 crore, reflecting both capital expansion and shareholder exit.

Tata Capital IPO Opens 6-8 October 2025 with Price Band ₹310–₹326 Per Share

The Tata Capital IPO is scheduled to open for subscription on 6 October 2025 and close on 8 October 2025, with tentative allotments finalised on 9 October 2025. Shares are expected to list on BSE and NSE on 13 October 2025. The IPO price band is set at ₹310–₹326 per share, and the minimum lot size for retail investors is 46 shares, requiring an investment of ₹14,996 at the upper band. Non-institutional investors (NIIs) can apply in larger lots, with sNII starting at 14 lots (644 shares, ₹2,09,944) and bNII at 67 lots (3,082 shares, ₹10,04,732).

Kotak Mahindra Capital Co. Ltd. is the book-running lead manager, while MUFG Intime India Pvt. Ltd. serves as the registrar, ensuring robust operational handling of the issue.

Tata Capital’s Strategic Scale: Third-Largest Diversified NBFC with ₹2,265.5 Billion Gross Loans

Headquartered in Mumbai, Tata Capital Limited operates as a diversified NBFC, offering over 25 lending products across retail, SME, and corporate segments. As of 31 March 2025, TCL’s total gross loans reached ₹2,265.5 billion, representing a 37.3% CAGR over FY23–FY25, underlining its rapid expansion. The company serves over 7 million customers, spanning salaried individuals, self-employed professionals, SMEs, and large corporates. Retail and SME segments constitute 88.5% of total gross loans, with over 99% of accounts below ₹10 million and 79% secured, showcasing a highly granular and balanced portfolio.

The IPO proceeds, particularly the fresh issue, are intended to augment Tata Capital’s Tier-I capital, enabling it to sustain growth in lending operations, expand its reach, and strengthen balance sheet resilience.

Robust Financial Performance Signals Strength: Revenue Up 56%, PAT Up 10% YoY

Tata Capital has maintained strong financial performance, with revenue rising from ₹18,198.38 million in FY24 to ₹28,369.87 million in FY25 (a 56% increase) and profit after tax (PAT) increasing from ₹3,326.96 million to ₹3,655.02 million, marking a 10% YoY growth. EBITDA for FY25 stood at ₹20,338.22 million, compared to ₹14,247.76 million in FY24, reflecting efficient operational leverage and revenue diversification.

The company’s net worth increased to ₹32,761.73 million with reserves and surplus at ₹29,260.88 million, highlighting a strong capital base. Total borrowings rose to ₹2,11,851.60 million, in line with growth in lending operations, while maintaining a prudent debt-to-equity ratio of 6.6, ensuring financial stability.

Extensive Pan-India Distribution and Digital Edge Driving Competitive Advantage

Tata Capital operates an omni-channel distribution network spanning 1,516 branches across 27 states and union territories, supported by 30,000 direct selling agents (DSAs), 400+ OEM partners, and 8,000+ dealers. Its digital platforms, with 21 million app downloads, enable over 97.8% of customers to onboard digitally and manage AI-assisted collections, which account for 98.6% of receivables, ensuring efficiency and minimal credit risk.

The company has also integrated Tata Motors Finance Limited (TMFL), enhancing its vehicle finance portfolio and positioning Tata Capital as a full-stack provider of retail, SME, and auto finance, with access to a market valued at ₹18.4 trillion.

Tata Capital IPO Anchor Investors Commit ₹4,641.83 Crore, Lock-in Extending to January 2026

Tata Capital IPO has attracted significant anchor investment, with 14.23 crore shares subscribed by anchor investors, amounting to ₹4,641.83 crore. Half of the anchor shares are subject to a 30-day lock-in, expiring 8 November 2025, and the remaining shares locked for 90 days until 7 January 2026, reflecting strong institutional support ahead of the public subscription.

Industry Context: NBFC Sector Growth and Tata Capital’s Market Leverage

The Indian NBFC sector is projected to grow at a CAGR of 14–16% from FY25–FY28, primarily driven by retail and SME financing. Retail assets accounted for 58% of NBFC credit in December 2024, expanding at a 23% CAGR in FY23–FY24. While microfinance portfolios have contracted slightly to ₹3.59 lakh crore as of June 2025, opportunities exist in digital lending, vehicle finance, and SME credit.

Tata Capital’s diversified operations, robust risk management, and extensive digital infrastructure position it to leverage these sector trends effectively, with growth potential in retail, SME, and corporate lending.

The Tata Capital IPO represents a strategically significant expansion for India’s NBFC sector, reflecting both market confidence and the company’s financial resilience. With strong institutional support, robust capitalisation, and a diversified lending portfolio across retail, SME, and corporate segments, Tata Capital is well-positioned to scale operations, expand reach, and strengthen its presence across India’s growing financial services landscape.

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