Introduction
The wait is finally over! The Indian stock market is gearing up for one of the biggest financial sector IPOs of the decade — the Tata Capital IPO. Backed by the rock-solid legacy of the Tata Group, this offering isn’t just another listing; it’s a chance to invest in a diversified NBFC that touches almost every corner of India’s financial landscape.
From retail loans and SME financing to wealth management, housing finance, and sustainable energy solutions, Tata Capital has built a reputation as a go-to financial powerhouse for millions of Indians. With its ₹15,511.87 crore issue size, this IPO is poised to be a mega event in the markets, combining scale, credibility, and strong growth potential.
For investors, the Tata Capital IPO is more than just a subscription opportunity—it represents participation in the trusted future of India’s financial ecosystem, powered by the Tata brand.
Tata Capital IPO Overview
Tata Capital IPO Details
The Tata Capital IPO is set to be one of the largest in the Indian markets, reflecting the financial strength and brand value of the Tata Group. Below is a snapshot of the key details:
| Particulars | Details |
|---|---|
| IPO Size (Aggregate) | ₹15,511.87 crore |
| Fresh Issue | 21,00,00,000 shares (₹6,846.00 crore) |
| Offer for Sale (OFS) | 26,58,24,280 shares (₹8,665.87 crore) |
| Price Band | ₹310 – ₹326 per share |
| Face Value | ₹10 per share |
| Lot Size | 46 shares |
| Min Retail Investment (upper band) | ₹14,996 |
| Total Shares Offered | 47,58,24,280 |
| Listing | BSE & NSE |
| Book Running Lead Manager | Kotak Mahindra Capital Co. Ltd. |
| Registrar | MUFG Intime India Pvt. Ltd. |
| Shareholding (Pre-Issue) | 4,03,48,69,037 shares |
| Shareholding (Post-Issue) | 4,24,48,69,037 shares |
| IPO Documents | RHP |
This is a very large issuance dominated by OFS — Tata Sons is partly monetising its stake while retaining a controlling interest. The fresh capital component is meaningful (₹6,846 Cr) and the overall deal size makes the Tata Capital IPO a major liquidity event for the financial sector.
Important Dates- Tata Capital IPO
Here’s a look at the tentative Tata Capital IPO timeline:
| Event | Date |
|---|---|
| IPO Opening Date | 10 October 2025 |
| IPO Closing Date | 14 October 2025 |
| Basis of Allotment | 15 October 2025 |
| Refunds Initiation | 16 October 2025 |
| Credit of Shares to Demat | 16 October 2025 |
| IPO Listing Date | 17 October 2025 |
| UPI Mandate Cut-off | 5:00 PM on 14 October 2025 |
The schedule follows the typical T+3 listing norm, giving investors a swift allotment-to-listing turnaround. Faster timelines reduce uncertainty and keep investor sentiment buoyant.
Tata Capital IPO Objectives
- Promoter monetisation via Offer for Sale (majority of the issue).
- Fresh issue proceeds (₹6,846.00 Cr) — to augment Tier I capital to support future lending and onward lending.
The Tata Capital IPO is primarily an OFS; therefore, most cash flows to the selling promoter (Tata Sons). The fresh equity portion strengthens the company’s capital base for continued lending growth, supporting the NBFC’s aggressive expansion plans (branch roll-out, balance-sheet growth). Because the proceeds are largely promoter monetisation, investors should view the IPO more as a liquidity and market-pricing event for an already operating franchise — but the fresh capital still materially buttresses growth capacity and regulatory capital buffers.
Company Background & Business Model of Tata Capital IPO
Tata Capital Limited is the flagship financial services arm of the Tata Group and a wholly owned subsidiary of Tata Sons Private Limited. With the Tata Group’s 150+ year legacy across 10 industries—ranging from automotive and steel to IT, defence, and retail—Tata Capital enjoys unmatched brand trust and recall in India.
According to the Brand Finance India 100 (2025) report, the Tata brand has been ranked as India’s most valuable brand, which enhances investor confidence in this IPO.
Backing from Tata Sons and the Tata brand halo significantly strengthens Tata Capital’s ability to raise funds, retain customers, and scale business with relatively lower brand risk compared to other NBFCs.
Market Leadership
As per the CRISIL Report, Tata Capital is the third-largest diversified NBFC in India, with Total Gross Loans of ₹2,334 billion as of June 30, 2025. The company has delivered a CAGR of 37.3% in gross loans (FY23–FY25), making it one of the fastest-growing large NBFCs in the country.
Its asset quality is among the best in the industry:
- Gross Stage 3 Loans Ratio: 2.1%
- Net Stage 3 Loans Ratio: 1.0%
- Provision Coverage Ratio (PCR): 53.9%
| Metric (As of June 30, 2025) | Tata Capital (Excl. TMFL) | Tata Capital (Consolidated) | Industry Benchmark* |
|---|---|---|---|
| Gross Stage 3 Loans Ratio | 1.5% | 2.1% | 3–4% |
| Net Stage 3 Loans Ratio | 0.5% | 1.0% | 1.5–2% |
| PCR | 65.8% | 53.9% | ~50% |
*Industry benchmark for large diversified NBFCs.
Strong underwriting and collections efficiency, combined with conservative risk management, has allowed Tata Capital to maintain superior asset quality even while growing at a high pace—something many peers struggle to balance.
Business Segments
Tata Capital operates through a well-diversified lending portfolio with over 25 products, catering to retail, SME, and corporate customers.
Segment-wise Loan Book (As of June 30, 2025)
- Retail Finance (61.3%) – Home loans, personal loans, vehicle loans, education loans, LAP, business loans.
- SME Finance (26.2%) – Supply chain finance, equipment finance, developer loans, clean-tech finance.
- Corporate Finance (12.5%) – Infrastructure, developer finance, structured loans.
Over 87.5% of total loans are in Retail & SME segments, reflecting Tata Capital’s focus on granular and secured retail lending.
High retail and SME exposure ensures loan book granularity, reducing concentration risks. With 80% secured lending and 98% small-ticket loans (<₹10 mn), the portfolio is relatively safer in downturns.
Distribution & Digital Ecosystem
Tata Capital follows a ‘phygital’ distribution model with:
- 1,516 branches across 27 States & UTs
- A strong digital platform (website, app, WhatsApp, AI chatbot TIA, IVR)
- Partnerships with OEMs, DSAs, dealers, and fintech partners
Notably, 97%+ of customers were onboarded digitally in FY25, and 80%+ customers adopted digital servicing channels.
This hybrid model combines the trust of physical presence with digital scale, enabling customer acquisition across Tier I–III cities.
Merger with TMFL (Tata Motors Finance Ltd)
In May 2025, Tata Capital successfully merged with Tata Motors Finance Ltd (TMFL). TMFL was a leading player in vehicle financing, with 353 branches and strong dealer linkages.
Key Benefits of the Merger:
- Consolidates Tata Capital’s auto finance portfolio.
- Expands customer reach in commercial & passenger vehicle loans.
- Unlocks synergies in scale, distribution, and collections.
The merger has strategically positioned Tata Capital as a full-stack vehicle finance player in a ₹18.4 trillion market, further strengthening cross-selling opportunities.
Non-Lending Businesses
Beyond lending, Tata Capital also operates asset-light businesses such as:
- Wealth management for HNIs & retail clients.
- Insurance & credit card distribution.
- Private Equity funds (Growth & Healthcare, raising Fund III).
- New thematic initiative: Decarbonization Fund.
These businesses diversify revenue streams, provide fee income, and align Tata Capital with long-term structural themes like healthcare & green finance.
Risk Management
Tata Capital maintains one of the most robust risk management frameworks among NBFCs, covering credit, operational, market, and reputational risks. Its proactive risk culture is supported by:
- Machine learning-powered collections
- Data-driven underwriting
- Multi-layered governance framework
Low credit cost ratio (~0.9%) reflects the effectiveness of Tata Capital’s risk controls. This is a key differentiator against peers with weaker asset quality.
Tata Capital’s business model combines granular secured lending, robust asset quality, strong digital adoption, and the Tata brand halo. The merger with TMFL has deepened its foothold in auto finance, while non-lending businesses and a AAA credit rating provide additional growth levers and financial strength.
Tata Capital IPO Financial Performance
Revenue & Profit Growth
Tata Capital has displayed robust financial growth over the past three fiscal years, supported by an expanding loan book, disciplined risk management, and strong brand-backed customer acquisition.
Between FY24 and FY25:
- Total Income grew by 56% (₹18,198 Cr → ₹28,369 Cr).
- Profit After Tax (PAT) grew by 10% (₹3,327 Cr → ₹3,655 Cr).
This strong top-line growth shows scaling momentum, while steady PAT reflects higher provisioning and operating costs in a rapidly expanding portfolio.
| Particulars (₹ Cr) | 30 Jun 2025 | FY25 | FY24 | FY23 |
|---|---|---|---|---|
| Assets | 2,52,254 | 2,48,465 | 1,76,694 | 1,35,626 |
| Total Income | 7,692 | 28,370 | 18,198 | 13,637 |
| EBITDA | 5,566 | 20,338 | 14,248 | 10,763 |
| Profit After Tax | 1,041 | 3,655 | 3,327 | 2,946 |
| Net Worth | 32,762 | 32,588 | 23,540 | 17,959 |
| Reserves & Surplus | 29,261 | 24,299 | 18,122 | 11,899 |
| Borrowings | 2,11,852 | 2,08,415 | 1,48,185 | 1,13,336 |
The balance sheet expanded significantly, with assets growing 41% YoY (FY24 → FY25) and borrowings rising in line with loan book expansion. However, net worth also improved, supported by retained earnings, ensuring capital adequacy stability.
Key Ratios & Profitability of Tata Capital IPO
| KPI (FY25) | Value | Analyst View |
|---|---|---|
| ROE | 12.6% | Healthy, reflects efficient equity deployment, though slightly below peak NBFC levels (15–18%). |
| RoNW | 11.2% | Indicates strong returns, despite higher provisioning. |
| Debt/Equity | 6.6x | On the higher side, but acceptable for a large NBFC with AAA rating & diversified book. |
| Market Cap (IPO) | ₹1,38,383 Cr | Places Tata Capital among India’s top NBFCs, closer to Bajaj Finance in valuation league. |
Profitability ratios reflect balanced growth and credit discipline. While leverage (6.6x) appears high, it is industry-consistent and mitigated by the Tata brand halo and AAA credit rating, ensuring cheap borrowing costs.
Operational Metrics of Tata Capital IPO
Tata Capital has consistently strengthened its distribution, customer base, and disbursement scale.
| Metric | FY23 | FY24 | FY25 | Q1 FY26 (Jun 2025) |
|---|---|---|---|---|
| Branches | 539 | 867 | 1,289 | 1,516 |
| Employees | 14,490 | 19,250 | 28,079 | 28,813 |
| Customers (Mn) | 3.2 | 4.5 | 5.6 | 7.3 |
| Disbursements (₹ Cr) | 74,767 | 1,04,994 | 14,2302 | 34,714 |
| Gross Loans (₹ Cr) | 1,20,197 | 1,61,231 | 1,98,787 | 2,33,399 |
| Secured Loan Ratio | 76.9% | 75.5% | 77.6% | 80.0% |
| Disbursement Growth YoY | 39.9% | 40.4% | 35.5% | 12.7% |
Tata Capital has doubled its customer base in just 2 years (3.2 Mn → 7.3 Mn), driven by digital adoption (97%+ digital onboarding) and network expansion. The high share of secured loans (80%) provides asset quality stability.
Income Mix & Margins
- Net Interest Income (NII) grew from ₹68,0 Cr (FY24) → ₹1,06,901 Cr (FY25).
- Fee Income rose from ₹12,729 Cr → ₹23,456 Cr in FY25, diversifying revenue.
- Net Interest Margin (NIM) stable at ~5.1%.
- Cost-to-Income Ratio improved to 40.6% (vs 42% in FY24).
- Credit Cost Ratio rose to 0.9%, reflecting cautious provisioning in a growth phase.
Stable NIMs with rising fee income indicate strong operating efficiency. Improved cost-to-income highlights scalability benefits, while a slight rise in credit cost is a conservative buffer, not a red flag.
Asset Quality
- Gross Stage 3 Loans: 2.1% (better than industry avg ~3–4%).
- Net Stage 3 Loans: 1.0%.
- Provision Coverage Ratio (PCR): 53.9% (moderate buffer, lower than FY24’s 63.5%).
Asset quality remains superior to most NBFCs, backed by granular loan book (98% small-ticket loans) and 80% secured lending. Slightly lower PCR suggests management is confident about recoveries.
Tata Capital’s financials showcase a company in high-growth mode, balancing rapid expansion with asset quality discipline. While leverage is elevated, strong margins, diversified income streams, and brand-backed trust keep it resilient. For investors, this IPO reflects a steady compounding NBFC play with Tata Group’s credibility and a growing retail + SME footprint.
Valuation & Peer Comparison of Tata Capital IPO
Tata Capital IPO Valuation
Tata Capital IPO valuation indicates that the company is being priced at a premium, justified by its strong growth trajectory, robust customer base, and Tata brand trust.
| Metric | Pre-IPO | Post-IPO |
|---|---|---|
| EPS (₹) | 9.06 | 9.81 |
| P/E (x) | 35.99x | 33.24x |
| Price-to-Book (P/B) | 4.10x | 4.10x (stable) |
| Market Cap (₹ Cr) | — | 1,38,383 |
With a post-IPO P/E of 33.24x, Tata Capital is being positioned in line with premium NBFCs like Bajaj Finance (37.8x) and Cholamandalam (31.5x). The valuation is above sector average, signaling strong investor appetite and management confidence.
Tata Capital IPO Peer Comparison
| Company | EPS (₹) | NAV/Share (₹) | P/E (x) | RoNW (%) |
|---|---|---|---|---|
| Tata Capital (IPO) | 9.30 | 79.50 | 33.24 | 11.20 |
| Bajaj Finance | 26.89 | 155.60 | 37.80 | 17.35 |
| Shriram Finance | 50.82 | 300.30 | 12.10 | 16.83 |
| Cholamandalam Inv. & Fin. | 50.72 | 281.50 | 31.50 | 18.01 |
| L&T Finance | 10.61 | 102.50 | 23.10 | 10.34 |
| Sundaram Finance | 170.53 | 1,187.80 | 26.90 | 13.74 |
| HDB Financial Services | 27.40 | 198.80 | 28.10 | 14.57 |
Valuation Insights
- Premium vs. Established Players
- Tata Capital’s P/E (33.24x) is close to Bajaj Finance (37.8x), indicating the market is valuing it as a premium NBFC play.
- Despite lower RoNW (11.2% vs peers’ ~14–18%), investors are willing to pay for growth visibility & Tata brand trust.
- Relative Positioning
- Compared to L&T Finance (23.1x P/E), Tata Capital is priced richer, reflecting its better growth trajectory & retail-focused model.
- Shriram Finance trades at only 12.1x P/E, but that comes with a high-risk, higher NPAs profile in vehicle finance.
- P/B Benchmark
- At 4.1x P/B, Tata Capital is costlier than Sundaram (2.3x) and Shriram (1.5x), but justified by high growth, digital scale-up, and diversified loan mix.
- Market Cap Impact
- With an expected market cap of ₹1.38 Lakh Cr, Tata Capital will directly compete with Bajaj Finance & Cholamandalam, positioning itself as a Tier-1 NBFC heavyweight.
Tata Capital IPO is not cheap—but premium valuations are justified by:
- Strong brand equity & AAA rating.
- Rapidly expanding loan book with high secured lending.
- Retail & SME focus with digital-first adoption.
- Comparisons with Bajaj Finance and Chola suggest that Tata Capital is priced as a long-term compounding story, rather than a near-term undervalued bet.
For investors, this is a growth play at a premium, ideal for those with a 3–5 year horizon rather than short-term listing gains.
Strengths & Risks of Tata Capital IPO
| Strengths (Positives) | Risks (Concerns) |
|---|---|
| Backed by Tata Group – strong brand trust, governance, and financial backing. | High Valuation – IPO priced at premium P/E (33.24x), leaving less margin for error. |
| Among the top 3 diversified NBFCs in India with 25+ lending products. | High Leverage – Debt/Equity at 6.6x, which may limit flexibility in downturns. |
| Pan-India distribution – 1,516 branches across 27 states, 7.3M+ customers. | Interest Rate Risk – NBFC margins can be squeezed if borrowing costs rise. |
| Strong financial growth – 56% income growth in FY25, consistent profitability. | Competition – Faces strong rivals like Bajaj Finance, Chola, Shriram. |
| Digital-first strategy – analytics-driven lending, omni-channel presence. | Asset Quality Risk – Stage 3 loans at 2.1% gross (manageable, but sensitive to macro). |
| AAA credit rating ensures low borrowing costs. | Regulatory Risk – RBI tightening on NBFCs can impact lending freedom. |
| Diversified loan book – Retail (61%), SME (26%), Corporate (12%). | Lower RoNW (11.2%) compared to peers (14–18%). |
Expert Analysis
The Tata Capital IPO comes with a compelling mix of strengths and caution points.
On the strength side, investors benefit from the Tata brand trust, which is a huge intangible moat. Tata Capital has transformed itself into a digital-first NBFC powerhouse, expanding rapidly in retail and SME finance, while maintaining AAA credit ratings that lower borrowing costs. Its scale (7.3 million+ customers, ₹2.5 lakh crore AUM) places it in the league of systemically important NBFCs, making it a direct challenger to Bajaj Finance and Cholamandalam.
However, risks cannot be ignored. The IPO is being priced at a premium valuation, leaving little upside if growth falters. The company’s debt-equity ratio of 6.6x is on the higher side, which could make it vulnerable during credit tightening cycles. Further, competition is intense in consumer and SME finance, and even small slippages in asset quality could impact profitability.
Bottom Line: Tata Capital IPO is a long-term growth story backed by trust, scale, and diversification, but investors should enter with the awareness that premium valuations come with premium risks.
Grey Market Premium (GMP) – Tata Capital IPO
The Tata Capital IPO GMP has been showing some cooling-off in the recent sessions, reflecting cautious sentiment in the unlisted market. While demand is still visible, the slight dip suggests investors are booking early gains ahead of listing.
Tata Capital IPO GMP Trend
| GMP Date | IPO Price | GMP | Sub2 Sauda Rate | Estimated Listing Price | Estimated Profit* |
|---|---|---|---|---|---|
| 03-10-2025 | ₹326.00 | ₹18 (Down) | 600 / 8400 | ₹344 (5.52%) | ₹828 |
| 02-10-2025 | ₹326.00 | ₹20 (Down) | 700 / 9800 | ₹346 (6.13%) | ₹920 |
| 01-10-2025 | ₹326.00 | ₹22 (No Change) | 800 / 11200 | ₹348 (6.75%) | ₹1012 |
*Estimated profit calculated per lot of 42 shares.
The Tata Capital IPO is trading at a GMP of ₹18 as of October 3, 2025, down from ₹22 just two days earlier. This implies a listing gain expectation of around 5–6%, which is modest compared to high-growth peers.
While the Tata brand and strong fundamentals are keeping the grey market active, the premium valuations (P/E ~33x post-IPO) are capping excessive enthusiasm. Investors should note that GMP is only an informal indicator and actual listing performance will depend on broader market sentiment and institutional investor demand.
Bottom Line: The Tata Capital IPO GMP suggests a moderate listing pop, but the real value may lie in the long-term growth story rather than chasing short-term grey market buzz.
Conclusion – Should You Apply for Tata Capital IPO?
The Tata Capital IPO is one of the most awaited offerings in 2025, not only because it belongs to the trusted Tata Group, but also because of its solid positioning in the financial services sector. The company has delivered consistent growth in lending, wealth management, and digital finance solutions—making it a formidable player among NBFCs.
From a valuation perspective, Tata Capital is being offered at a post-IPO P/E of ~33x, which places it close to industry leaders like Bajaj Finance (37.8x) and Cholamandalam Finance (31.5x). While not the cheapest, the premium is justified given the company’s brand strength, diversified financial services, and strong balance sheet.
On the flip side, risks such as interest rate fluctuations, asset quality concerns, and intense competition from both established NBFCs and digital fintechs could weigh on margins in the long run. The modest GMP of ₹18 (5–6% listing gain) indicates that the market is cautiously optimistic, but not euphoric.
Tata Capital IPO Strategy
For conservative investors, this IPO offers a safe entry into the Tata ecosystem with steady, long-term wealth creation potential. For listing gain seekers, expectations should be tempered—don’t expect bumper gains, but a stable debut is likely.
Apply if: You are looking for a long-term portfolio stock with strong fundamentals and Tata brand credibility.
Think twice if: You are only chasing short-term listing gains, as the GMP trend shows limited upside.
Final Word: The Tata Capital IPO is a high-quality, fundamentally strong offer that deserves serious consideration for long-term investors.
FAQs- Tata Capital IPO
Q1: What is the Tata Capital IPO size?
A1: The Tata Capital IPO aggregates to ₹15,511.87 crore (fresh ₹6,846.00 crore + OFS ₹8,665.87 crore).
Q2: When does the Tata Capital IPO open and close?
A2: The Tata Capital IPO opens on Oct 6, 2025 and closes on Oct 8, 2025.
Q3: What is the price band and lot size?
A3: Price band is ₹310–₹326 per share and the lot size is 46 shares (min. retail investment ₹14,996 at upper band).
Q4: Where will Tata Capital list?
A4: The Tata Capital IPO will list on BSE and NSE, tentatively on Oct 13, 2025.
Q5: Who is the lead manager and registrar?
A5: Book Running Lead Manager is Kotak Mahindra Capital Co. Ltd. and the registrar is MUFG Intime India Pvt. Ltd.
Q6: What is the GMP and expected listing gain?
A6: As of 03-10-2025, GMP ~₹18, implying an estimated listing gain of ≈5–6% over the upper band.
Q7: How much stake does Tata Sons retain after the IPO?
A7: Promoter holding goes from ~95.6% pre-issue to about ~85.5% post-issue (promoter continues to hold majority control).
Q8: What are the financial highlights?
A8: FY25 total income ₹28,369.87 Cr (≈+56% YoY) and PAT ₹3,655.02 Cr (+10% YoY); assets ₹2,48,465.01 Cr at FY25.
Q9: Is the Tata Capital IPO value for money?
A9: It’s a premium but defensible valuation (P/E ~33x, P/B ~4.1x) — suitable for long-term investors who prioritise brand and stability over cheap entry multiples.
Q10: Should I apply?
A10: Consider applying if you seek long-term exposure to a large, well-governed NBFC with Tata backing. If you seek quick listing pops, temper expectations — GMP suggests modest initial upside.
Note: All financials, KPIs, and IPO details of the Tata Capital IPO are sourced from the company’s Red Herring Prospectus (RHP) and official filings.
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