TATA Capital IPO: IPO Dates, Financials, Shareholder Quota & More
The much-anticipated IPO of TATA Capital Limited has been announced, marking a major event in the financial markets. As the flagship financial services company of the venerable Tata Group, this is more than just another public offering. It's a chance to invest in one of India's most distinguished business conglomerates with a legacy spanning over 150 years. Given the company's strong performance and market position, this looks like a compelling opportunity. Let's break down the key details of this mega IPO.
1. A Giant in Financial Services
TATA Capital isn't just a big name; it's a major player in the market. According to the CRISIL Report, the company is the third-largest diversified NBFC in India with a gross loan book of ₹2,334.0 billion as of June 30, 2025. It boasts a comprehensive suite of over 25+ lending products, catering to a diverse customer base of over 7.3 million individuals, entrepreneurs, and corporates. The company's merger with Tata Motors Finance Limited (TMFL) has further solidified its position, especially in the vehicle finance market, where it's now a full-stack provider.
2. Key IPO Details and Dates
This is a truly massive IPO, designed to meet regulatory requirements and fund future growth. Here are the core details you should be aware of:
| Particulars | Details |
|---|---|
| IPO Dates | October 6 - 8, 2025 |
| Issue Size | ~₹16,000 Crores |
| Total Shares | 47,58,24,280 |
| Fresh Issue | 21,00,00,000 shares |
| Offer for Sale (OFS) | 26,58,24,280 shares |
| Face Value | ₹10 per share |
| Retail Reservation | Not less than 35% of the Net Offer |
| Employee Quota | Yes, up to 1,200,000 shares |
| Shareholder Quota | NO |
3. Financial Highlights
The company has a consistent track record of strong financial performance. Here is a summary of the key financial figures:
| Particulars (₹ Cr) | FY23 | FY24 | FY25 | Q1 FY26 |
|---|---|---|---|---|
| Revenue | 13,637 | 18,199 | 28,370 | 7,691.7 |
| PAT | 2,945.8 | 3,327 | 3,655 | 1,040.9 |
4. Use of Fresh Issue Proceeds
The fresh issue component of the IPO, amounting to ₹170 Cr, is planned to be used for:
- Augmenting the company's Tier I capital base to meet future capital requirements for onward lending.
- Meeting the expenses related to the Offer.
5. Key Risks to Consider
As with any investment, there are risks to be aware of:
- Being an NBFC, the company is susceptible to changes in laws, rules, and regulations, as well as periodic inspections by the RBI.
- The company relies on the strength of the "TATA" brand, and any negative publicity could materially affect the business.
- The IPO includes a large Offer for Sale portion, meaning the proceeds will go to the selling shareholders and not the company.
- The price of the shares after listing may be volatile and may not reflect the Offer Price.
6. Final Conclusion
TATA Capital stands out as a strong and well-managed company within a promising sector. The capital infusion from the IPO will be instrumental in funding its growth and meeting regulatory requirements. The brand value, diverse product portfolio, and robust financial performance are key positives. While the risks are present, they seem manageable for a company of this stature. Given the overall growth potential and the strong fundamentals, I believe this is a good opportunity.
Frequently Asked Questions (FAQs)
Q. What is the business of TATA Capital Limited?
A. TATA Capital is the flagship financial services company of the Tata Group. It is a diversified NBFC offering over 25 lending products to a wide range of customers, and also has non-lending businesses including wealth management and insurance distribution.
Q. What is the date of Tata Capital IPO?
A. The IPO is open for subscription from October 6, 2025, to October 8, 2025.
Q. Who are the Book Running Lead Managers for the IPO?
A. The IPO has a large consortium of book-running lead managers, including Kotak Mahindra Capital, Axis Capital, BNP Paribas, Citigroup, HDFC, SBI CAPS, HSBC Securities, IIFL Capital, and J.P. Morgan.
Q. Who is the registrar for Tata Capital IPO?
A. The registrar is MUFG Intime India Private Limited.
Q. What is the face value of each share?
A. The face value of each equity share is ₹10.
Q. Is there an employee quota in Tata Capital IPO?
A. Yes, the offer includes a reservation of up to 1,200,000 equity shares for eligible employees.
Q. Is there any shareholder quota in Tata Capital IPO?
A. No, there is no shareholder quota in this IPO.
Q. How will the company use the IPO proceeds?
A. The company will not receive any funds from the Offer for Sale. The net proceeds from the fresh issue will be used to augment the company's Tier I capital base to meet future capital requirements for onward lending and to meet Offer expenses.
Q. What is the company's credit rating?
A. TATA Capital holds the highest possible domestic credit rating of 'AAA' from CRISIL, ICRA, CARE, and India Ratings. It also has a long-term international rating of 'BBB' from S&P Global Ratings and 'BBB-' from Fitch.
Just a personal view, for educational purposes only. Do your own due diligence before investing.