Tata Capital, one of India’s prominent non-banking financial companies (NBFCs), has opened its maiden IPO, drawing investor attention in the current stock market today landscape. The IPO reflects a mix of steady profitability and moderate pricing compared to listed peers, highlighting Tata Capital’s strategic positioning in India’s growing NBFC sector.
Market Performance
- IPO size: ₹15,512 crore
- Price band: ₹310–₹326 per share
- Public issue: 47.58 crore shares (21 crore fresh, 26.58 crore offer for sale)
- Valuation: Around ₹1.38 lakh crore at the upper end of the price band
The market has shown strong interest, as Tata Capital’s IPO provides access to a mix of retail and institutional investors seeking steady growth exposure in financial services.
Key Highlights of the IPO
The IPO positions Tata Capital strategically among India’s leading NBFCs. Key aspects include:
- Book value multiple: Trades at ~4.1x trailing book value, below Bajaj Finance’s 6.4x
- Revenue metrics: Revenue from operations of ₹28,313 crore in FY25
- AUM growth: 37.3% CAGR over FY23-25, signaling strong operational expansion
- Profitability: PPoP CAGR of 33.2% over FY23-25
- Asset quality: NNPA at 0.8%, reflecting stable risk management
- Branch network: 1,496 branches with ~29,400 employees
These figures underscore Tata Capital’s balance between strong operational performance and a moderate valuation, offering a stable platform for investors.
Financial Snapshot Compared to Peers
CMP (₹) | 326 | 999 | 249 | 750 | 616 |
Market Cap (₹ Cr) | 1,38,382 | 6,21,377 | 62,321 | 62,225 | 1,15,945 |
AUM CAGR (FY23-25) | 37.3% | 29.8% | 9.9% | 23.7% | 19.1% |
PPoP CAGR (FY23-25) | 33.2% | 26.7% | 14.3% | 12.9% | 14.8% |
NNPA | 0.8% | 0.4% | 0.8% | 1.0% | 2.6% |
RoE | 12.6% | 17.2% | 10.3% | 13.8% | 14.5% |
RoA | 1.9% | 4.0% | 2.7% | 2.0% | 3.1% |
P/B TTM | 4.1x | 6.4x | 2.4x | 3.9x | 2.1x |
This comparison highlights Tata Capital’s balanced growth and risk profile, making it a strong contender among mid-sized NBFCs despite its smaller scale relative to top-tier players.
Operational Footprint
Tata Capital operates across retail, dealer, and supply chain finance, providing a comprehensive NBFC presence:
- Branches: 1,496
- Employees: ~29,400
- Customers: ~7 million
- Gross loans: ₹2.26 lakh crore
- Interest income FY25: ₹25,720 crore
- Net interest income FY25: ₹10,690 crore
- Profit after tax FY25: ₹3,665 crore
- Disbursements: ₹1.42 lakh crore
The company’s scale and reach, combined with a robust branch network, have positioned it for steady loan book expansion and diversified financial services offerings.
Company Details
Tata Capital recently merged with Tata Motors Finance, enhancing its footprint across India. This consolidation brings:
- Broader geographic reach
- Product diversification
- Operating synergies
- Improved capital efficiency
The move enables Tata Capital to function as a full-stack vehicle financier, covering retail, dealer, and supply chain segments, and strengthens its platform for long-term growth.
Summary
Tata Capital’s maiden IPO has opened with a valuation of ₹1.38 lakh crore, offering investors exposure to a rapidly growing NBFC with strong operational metrics. Its strategic consolidation with Tata Motors Finance, healthy AUM growth, and robust profitability position the company as a noteworthy participant in the Indian financial services market.
With 1,496 branches, a large employee base, and a growing loan book, Tata Capital is set to leverage its omni-channel presence and parentage to establish a strong foothold in retail and dealer financing.
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