Blitz Bureau
Mumbai: Tata Capital Ltd, the financial services arm of the Tata Group, is poised to launch one of the largest initial public offerings (IPOs) in India’s financial sector this month. The $2 billion (₹17,200 crore) issue is scheduled to open in the week beginning September 22, with a likely market debut before September 30.
The IPO is expected to value the company at about $11 billion. According to the updated draft red herring prospectus filed in August, the public offer will include a fresh issue of 210 million equity shares and an offer for sale of 265.8 million shares. Tata Sons, which currently holds 88.6 per cent of the company, will offload 23 crore shares, while the International Finance Corporation (IFC), with a 1.8 per cent stake, will divest 3.58 crore shares.
Proceeds from the fresh issue will be used to strengthen the company’s Tier-I capital base, supporting future lending requirements and business growth. If successful, this IPO will mark Tata Group’s second major listing in recent years, following Tata Technologies’ public debut in November 2023.
Regulatory push and market backdrop
The listing is being undertaken in line with the Reserve Bank of India’s (RBI) scale-based regulation framework, which requires “upper-layer” non-banking financial companies (NBFCs) to be listed within three years of classification. Tata Capital was designated in September 2022, making this IPO necessary before the September 2025 deadline.
The move follows similar offerings in the NBFC sector. HDB Financial Services, the non-banking arm of HDFC Bank, raised ₹12,500 crore through its IPO in June 2025. Bajaj Housing Finance, another upper-layer NBFC, made a blockbuster debut in September 2024, with its stock soaring 135 per cent on the first day of trade.
IPO boom in India
Tata Capital’s listing comes amid a record run for India’s primary markets. In the first half of 2025, 119 companies raised ₹511.5 billion through IPOs, while 143 more are lined up, with 73 already receiving approvals.
The momentum builds on a record-breaking 2024, when 333 companies tapped the markets, raising a total of ₹1.7 trillion. In 2023, there were 243 listings worth ₹588 billion. On the mainboard, 80 IPOs were completed in FY25, compared to 76 in FY24.
Over the past decade, India has emerged as one of the most active IPO markets globally. Between 2015 and 2024, more than 2,000 IPOs were launched across mainboard and SME platforms, raising an estimated ₹6–7 trillion. This surge reflects both robust domestic investor appetite and India’s growing importance as a global investment destination.
Benefits for the nation and shareholders
Analysts believe Tata Capital’s IPO will have wide-ranging benefits for the economy and investors alike.
For the nation, the listing underscores the deepening of India’s financial markets, which are increasingly capable of absorbing large-scale offerings. It will improve transparency and governance in the NBFC sector, ensuring stricter disclosures and accountability under public market norms. By raising fresh equity, Tata Capital will be able to expand its lending base, directly supporting credit flow to retail borrowers and small businesses – a crucial driver of India’s growth.
For shareholders, the IPO offers exposure to a diversified NBFC backed by one of India’s most trusted corporate groups. The use of proceeds to strengthen capital adequacy is expected to enhance the company’s ability to generate sustainable returns on equity. Recent NBFC listings, including Bajaj Housing Finance, have delivered sharp listing-day gains, and while performance varies by pricing and sentiment, investors view Tata Capital’s combination of brand strength, diversified loan portfolio, and experienced leadership as compelling.
Blitz View
As India continues to lead emerging markets in IPO activity, Tata Capital’s $2 billion issue will serve as a litmus test of investor appetite for large-cap financial services firms. It also symbolizes the success of RBI’s regulatory push to bring NBFCs under tighter market discipline.
Market experts note that with strong domestic ratings, a robust capital plan, and diversified growth engines, Tata Capital is well-positioned to sustain performance post-listing. Its debut is expected not only to boost the Tata Group’s financial arm but also to reaffirm India’s standing as one of the world’s most dynamic IPO destinations.
