Tata Capital IPO Ltd is launching its Initial Public Offering (IPO) to meet the Company’s future capital requirements. The IPO comprises a fresh issue of 21.00 crore shares aggregating to Rs. 6,846.00 crores and an offer for sale of 26.58 crore shares aggregating to Rs. 8,665.87 crores with a face value of Rs. 10 each.
Tata Capital IPO opens for subscription on October 06, 2025, and closes on October 08, 2025, with the price band set at Rs. 310-326 per equity share. Tata Capital Ltd IPO will list on BSE and NSE, with a tentative listing date fixed as October 13, 2025.
GMP of Tata Capital IPO
As of October 03, 2025, the shares of Tata Capital in the grey market were trading at a 5.52 percent premium. The shares in the Grey Market traded at Rs. 344. This gives it a premium of Rs. 18 per share over the cap price of Rs. 326.
Overview of Tata Capital
Tata Capital Limited (TCL), a subsidiary of Tata Sons, is a leading non-banking financial company (NBFC) in India, offering a wide range of financial services to retail, corporate, and institutional clients. Its key offerings include consumer loans, commercial finance, wealth management, investment banking, private equity, and cleantech finance.
As of March 31, 2025, TCL provides over 25 lending products tailored to salaried individuals, entrepreneurs, SMEs, and corporates. By June 30, 2025, it had established a strong nationwide presence with 1,516 branches across 1,109 locations in 27 states and union territories. Beyond lending, TCL also engages in distributing third-party products like insurance and credit cards, and offers wealth management and private equity services.
Promoters of Tata Capital Ltd
The promoters of Tata Capital Ltd, TATA SONS PRIVATE LIMITED, bring extensive expertise in financial services, risk management, and strategic investment. Their strong leadership and deep understanding of diverse financial products, customer-centric solutions, and technology-driven innovation have been key in expanding Tata Capital’s presence across India and strengthening its position in the NBFC sector.
Offer For Sale
The Offer for Sale includes:
Tata Sons Private Limited (Promoter Selling Shareholder) is offering up to 230,000,000 equity shares of face value Rs. 10 each, with a weighted average cost of acquisition of Rs. 34.0 per share.
International Finance Corporation (Investor Selling Shareholder) is offering up to 35,824,280 equity shares of face value Rs. 10 each, with a weighted average cost of acquisition of Rs. 25.0 per share.
Lead Managers of Tata Capital IPO
Kotak Mahindra Capital Company Limited, Axis Capital Limited, BNP Paribas, Citigroup Global Markets India Private Limited, and HDFC Bank Limited are acting as the Book Running Lead Managers. MUFG Intime India Private Limited (formerly Link Intime India Private Limited) is the registrar managing investor applications and allotment.
Objectives of the IPO Offer
The Tata Capital IPO aims to use the net proceeds primarily to strengthen the company’s Tier-I capital base, ensuring sufficient funds to meet future capital needs, including for onward lending.
Financial Analysis of Tata Capital Ltd
Tata Capital Ltd has demonstrated steady financial performance over the past three years. The company’s total income was Rs. 13,637.49 crore in March FY23, which increased to Rs. 18,198.38 crore in March FY24, and further rose to Rs. 28,369.87 crore in March FY25 and stood at Rs. 7,691.65 as of June 2025.
Profit After Tax (PAT) grew from Rs. 2,945.77 crore in March FY23 to Rs. 3,326.96 crore in March FY24, and then to Rs. 3,655.02 crore in March FY25, and stood at Rs. 1,040.93 June 2025.
Tata Capital Ltd Vs Peers
Tata Capital Limited
Tata Capital reported revenue of Rs. 283,127.4 million for Fiscal 2025. With a face value of Rs. 10 per share, both its basic and diluted EPS stand at Rs. 9.3. The Return on Net Worth (RoNW) is 11.2%, and its NAV per share is Rs. 79.5.
Bajaj Finance Limited
Bajaj Finance generated Rs. 696,835.1 million in revenue. With a face value of Rs. 1, its basic and diluted EPS are Rs. 26.9 and Rs. 26.8, respectively. It has a RoNW of 17.4%, NAV of Rs. 155.6, a P/E ratio of 37.8, and a P/B ratio of 6.5.
Shriram Finance Limited
Shriram Finance reported revenue of Rs. 418,344.2 million. The face value of its shares is Rs. 2, and its EPS (basic and diluted) is Rs. 50.8. The company has a RoNW of 16.8%, a NAV per share of Rs. 300.3, a P/E ratio of 12.1, and a P/B of 2.0.
Cholamandalam Investment and Finance Company Limited
Cholamandalam posted Rs. 258,459.8 million in revenue. Its face value is Rs. 2, and EPS is Rs. 50.7 (basic) and Rs. 50.6 (diluted). RoNW stands at 18.0%, NAV at Rs. 281.5, with a P/E ratio of 31.5 and P/B of 5.7.
L&T Finance Limited
L&T Finance earned Rs. 159,242.4 million in revenue. With a face value of Rs. 10, its EPS (basic and diluted) is Rs. 10.6. The company has a RoNW of 10.3%, a NAV per share of Rs. 102.5, a P/E of 23.1, and a P/B of 2.4.
Sundaram Finance Limited
Sundaram Finance reported revenue of Rs. 84,856.3 million. Its face value is Rs. 10, and it has an EPS of Rs. 170.5 (both basic and diluted). RoNW is 13.8%, NAV is Rs. 1,187.8, with a P/E ratio of 26.9 and a P/B of 3.9.
HDB Financial Services Limited
HDB Financial posted Rs. 163,002.8 million in revenue. With a face value of Rs. 10, EPS (basic and diluted) is Rs. 27.4 and Rs. 27.3, respectively. RoNW is 14.6%, NAV per share is Rs. 198.8, with a P/E of 28.1 and a P/B of 3.9.
Tata Capital Strengths and Weaknesses
Strengths:
- It is a Flagship financial services company of the Tata group
- Third-largest diversified NBFC in India, with the most comprehensive lending product suite
- Omni-channel distribution model, comprising our pan-India branch network, partnerships, and digital platforms
- Prudent risk culture and robust credit underwriting and collections capabilities
- Digital and analytics are at the core of our business
- Highest credit rating with a diverse liability profile
- Consistent track record of strong financial performance
- Experienced management backed by a team of dedicated professionals
Weakness:
Asset Quality Risk: Gross Stage 3 Loans stood at 2.1% as of June 30, 2025, showing fluctuations over the last periods (1.7% in June 2024, 1.9% in March 2025, 1.5% in March 2024, and 1.7% in March 2023). An increase in defaults or delays in customer repayments can negatively impact the company’s financial health.
Provisioning Risk: The provision coverage ratio declined to 53.9% as of June 30, 2025, from 63.5% a year earlier and 77.1% in March 2023. Inadequate provisioning for non-performing assets may affect profitability, cash flows, and overall financial condition.
Unsecured Loan Exposure: Unsecured Gross Loans comprised 20.0% of total loans as of June 30, 2025, reflecting continued exposure to higher-risk segments (22.4% in June 2024, 24.5% in March 2024). Delays or failure in recovery could strain the company’s liquidity and earnings.
Loan Mix Risk: Shifts in the loan portfolio composition could impact key financial metrics and asset quality, potentially affecting the company’s operational performance and long-term growth.
Conclusion:
Tata Capital Ltd’s IPO offers investors a chance to participate in the growth of one of India’s leading diversified NBFCs, backed by the trusted Tata Group. With a broad product suite, strong pan-India distribution network, robust digital infrastructure, and consistent financial performance, Tata Capital is well-positioned to capture future growth in retail and commercial lending.
However, potential investors should consider asset quality concerns, declining provision coverage, and exposure to unsecured lending. While the company’s fundamentals are good, prudent due diligence is advised before investing in the IPO.
Written by Sridhar J
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