Tata Capital, a Tata Sons-backed NBFC, has taken a significant step by filing for an Initial Public Offering with the SEBI. The move is set to reshape its shareholding structure and bring fresh capital into the company.
Let’s take a closer look at the Tata Capital share price buzz, IPO details, ownership breakdown, and its overall business scale.
Market Performance
Though the Tata Capital share price is yet to be officially listed on stock exchanges, the IPO filing has stirred strong interest in the market. The offering is being seen as a pivotal moment for Tata Capital’s next growth phase as it prepares to go public under regulatory compliance.
IPO Highlights: Tata Capital Files DRHP
Tata Capital has filed its Draft Red Herring Prospectus (DRHP) with SEBI for a public issue of 47.58 crore equity shares.
- Fresh Issue: 21 crore shares
- Offer for Sale (OFS): 26.58 crore shares
- Total Offer Size: 47.58 crore shares
Among the selling shareholders:
- Tata Sons plans to sell up to 23 crore shares
- International Finance Corporation (IFC) to offload up to 3.58 crore shares
The IPO price band and listing dates are yet to be announced.
Company Details
Shareholding Structure (Pre & Post IPO)
Shareholder | Current Shares (Lakh) | OFS (Lakh) | % Pre IPO | % Post IPO |
Tata Sons | 35,750.64 | 2,300.00 | 88.6% | 74.2% |
TMF Holding | 1,862.25 | 0.00 | 4.6% | — |
829.37 | 0.00 | 2.1% | — | |
International Finance Corp | 716.49 | 358.24 | 1.8% | 0.8% |
Total Shares | 40,349 | — | — | 45,107 |
Purpose of the IPO
- A large share of the fresh issue proceeds will be directed towards meeting future capital requirements, with a focus on funding onward lending operations.
- A portion will also go towards offer-related expenses.
About Tata Capital
Tata Capital is one of India’s top-tier non-banking financial companies (NBFCs), operating under the Tata Group umbrella.
Key Business Highlights:
- Total AUM: ₹2.27 lakh crore
- Branches Across India: 1,496
- Core Offerings: Loan products, private equity, wealth management, and third-party product distribution
- Growth CAGR (FY23–FY25): 37.3% (loan book)
Tata Capital is currently the third-largest NBFC by loan book.
Revenue and Loan Book Comparison with Peers
Here’s how Tata Capital stacks up against major NBFCs in India:
NBFC | AUM (₹ Crore) | Loan Book CAGR (FY23–25) |
4,14,830 | 29.7% | |
2,59,920 | 19.1% | |
Tata Capital | 2,26,550 | 37.3% |
Chola Investment | 1,85,450 | 31.6% |
AB Capital | 1,26,350 | 25.2% |
Capital Infusion History
Over the past six years, Tata Capital has strengthened its balance sheet with significant capital infusions:
- Total Capital Infused: ₹6,000 crore
- FY24 Infusion: ₹2,000 crore
- FY23 Infusion: ₹500 crore
Regulatory Mandate and IPO Deadline
In September 2022, the Reserve Bank of India (RBI) classified Tata Capital as an upper-layer systemically important NBFC. This classification requires the company to go public within three years, making the September 2025 IPO deadline critical.
Bookrunning Lead Managers
Some of the key investment banks managing Tata Capital's IPO process include:
- Kotak Mahindra Capital
- BNP Paribas
- Citigroup Global Markets
Summary of the Article
Tata Capital’s IPO filing marks a pivotal transformation in its business trajectory. With a total offer size of 47.58 crore shares, a mix of fresh issue and OFS, the move will bring in new capital and reduce promoter holding to meet SEBI norms.
Backed by strong fundamentals, robust growth in loan book (37.3% CAGR), and ₹2.27 lakh crore in AUM, Tata Capital stands out among India’s leading NBFCs. The IPO will not only strengthen its capital base but also align with regulatory mandates from the RBI.
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