Tata Capital IPO is finally hitting the markets. One of India’s most trusted names in the financial services, Tata Capital Limited’s much-awaited IPO will be open for subscription from October 6th to October 8th, 2025. The IPO will be a massive ₹15,511 crore public issue, making it not only the biggest IPO of 2025 but also the largest ever by an NBFC in India.
In this blog, let’s break down everything you need to know about the company and the issue to help you make an informed decision whether to invest in the IPO. Let’s start.
Tata Capital IPO Details
| IPO Name | Tata Capital |
| IPO Open & Close Date | Oct 06 – Oct 08, 2025 |
| Issue Price Band | ₹310 to ₹326 per share |
| Lot Size | 46 Shares per lot |
| IPO Type | Fresh Issue & OFS |
| Allotment Date | Oct 9, 2025 |
| Listing Date | Oct 13, 2025 |
| Retail (Min) Lot Size & Amount | 1 lot & ₹14,996 |
| Retail (Max) Lot Size & Amount | 13 lots & ₹1,94,948 |
| Small HNIs (Min) Lot Size & Amount | 14 lots & ₹2,09,944 |
| Small HNIs (Max) Lot Size & Amount | 66 lots & ₹9,89,736 |
| Big HNIs (Min) Lot Size & Amount | 67 lots & ₹10,04,732 |
| Listing | NSE & BSE |
Objects of the Offer
The Tata Capital IPO has an issue size of ₹15,511.87 crore. It includes:
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A fresh issue of 21 crore shares worth ₹6,846 crore
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An offer for sale (OFS) of 26.58 crore shares worth ₹8,665.87 crore
The company will primarily use the proceeds from the fresh issue to increase the company’s Tier-I capital base. This will help the company to lend more, expand its operations, and meet future regulatory capital requirements.
The OFS portion will allow the promoter, Tata Sons Private Limited, and investor International Finance Corporation (IFC) to partially exit their holdings.
Industry Overview
India’s Non-Banking Financial Companies (NBFCs) are playing a vital role in bridging the credit gap left by traditional banks. They cater to retail borrowers, small businesses, and specific sectors like housing, vehicles, and consumer finance.
Here are the key takeaways from the Industry.
- There exists a significant retail credit gap in India, as compared to other nations. As is evident by India’s household credit to GDP ratio of 42% as of CY2024, as compared to 60%, 69% and 76% for China, United States, and the United Kingdom, respectively. Signalling significant room for credit penetration in the country.
2. Systemic credit to grow by 13-15% between FY2025 and FY2028. In terms of market share as of FY25, the share of NBFC in systemic credit is 21% and is expected to grow to 22% by FY28.
Note: E: Estimated, P: Projected; systemic credit includes domestic banking credit (after deduction of bank lending to NBFC), NBFC credit, commercial papers, external borrowings, and corporate bonds excluding those issued by banks and NBFCs.
3. Retail credit growth is projected to grow on a strong footing from FY2025 to FY2028
4. NBFC Credit to grow faster than systemic credit
Company Overview
Tata Capital was incorporated in 1991 and is a subsidiary of Tata Sons Pvt. Ltd., the holding company of the Tata Group. Over the years, Tata Capital has grown into one of India’s most diversified financial services companies.
Key Offerings
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Consumer Loans – Personal loans, home loans, auto loans, education loans, and loans against property.
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Commercial Finance – Working capital loans, equipment finance, term loans, and lease rental discounting for businesses.
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Wealth Management – Investment advisory, portfolio management, and distribution of mutual funds and insurance products.
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Investment Banking – Advisory services for mergers, acquisitions, and capital raising.
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Private Equity & Alternative Investments – Through its subsidiaries, the company manages several growth and healthcare-focused funds.
Financial Performance
| Particulars | FY23 | FY24 | FY25 | Q1 FY26 (Jun 2025) |
|---|---|---|---|---|
| Total Assets (₹ Cr) | 1,35,626 | 1,76,694 | 2,48,465 | 2,52,254 |
| Total Income (₹ Cr) | 13,637 | 18,198 | 28,370 | 7,692 |
| Profit After Tax (₹ Cr) | 2,946 | 3,327 | 3,655 | 1,041 |
| EBITDA (₹ Cr) | 10,763 | 14,248 | 20,338 | 5,566 |
| Net Worth (₹ Cr) | 17,959 | 23,540 | 32,588 | 32,762 |
| Total Borrowings (₹ Cr) | 1,13,336 | 1,48,185 | 2,08,415 | 2,11,852 |
What stands out?
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Strong growth: Revenue has jumped by 56% from FY24 to FY25, while profits rose by 10% during the same period
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Solid capital base: Net worth increased sharply, supported by healthy reserves.
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High leverage: Like most NBFCs, Tata Capital has significant borrowings.
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Consistent profitability: The company has remained profitable for the last several years.
Positives
1. Strong Brand and Group Backing
Being part of the Tata group brings unmatched trust and credibility. This not only allows the company to attract new customers but also reduces funding cost for the company as lenders have more confidence in the Tata name.
2. Diversified Business Model
The company is not dependent on one business type or customers; it offers a wide range of products from personal finance to corporate loans, which provides stability to the company even if one segment slows down.
3. Expanding Presence
The merger with Tata Motors Finance in May 2025 has enabled Tata Capital to expand its reach in vehicle loans and commercial finance. Combined with Digital initiatives, Tata Capital now serves millions of customers across India.
4. Strong Financial Growth
The company has shown a steady rise in income, profits, and assets.
5. Capital Boost from IPO
The fresh capital from the IPO will strengthen the balance sheet of the company, allowing it to lend more and compete effectively with large NBFCs and banks.
Key Risks
1. High Borrowings
Tata Capital borrows huge sums to lend further; this is how NBFC operates. However, if the interest rate increases, borrowing costs may increase, thereby squeezing profits.
2. Credit Risk
Like all NBFCs and Banks, Tata Capital too faces credit risk if customers delay or default on loan repayment, which could impact the earnings of the company. Although the company has a well-diversified loan portfolio, even a small jump in bad loans can have an impact.
3. Regulatory Challenges
Being a large NBFC, Tata Capital faces strict RBI supervision. Any new rules or compliance lapses could hurt operations or reputation.
4. Market Conditions
If the economy slows down or if inflation rises, then the borrowing will slow down, also borrowers will struggle to repay, impacting the company’s growth and profitability.
Should You Invest in the Tata Capital IPO?
The Tata Capital IPO is a landmark event not just for the Tata group but for the entire financial sector. It offers investors a chance to own a stake in a strong, growing, and trusted NBFC.
Here’s a quick summary:
Pros:
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Trusted Tata brand and strong governance
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Consistent financial growth
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Diversified and expanding business
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Fresh capital to support future lending
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Positive long-term outlook for NBFCs
Cons:
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High leverage and dependence on borrowings
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Integration risks post-merger with Tata Motors Finance Ltd.
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Moderate short-term upside potential
So, if you are a long-term investor looking for steady growth rather than just for quick listing gains, then Tata Capital can be a worthwhile addition to your portfolio. The company’s scale, credibility, and diversified business model make it a reliable player in the NBFC space.
However, if you’re only aiming for short-term profits, you may want to keep expectations measured. The company is a steady compounder story, not a quick bounce stock.
If you are a long-term wealth creation and prefer stability over speculation, this IPO deserves serious consideration.
Happy IPO Investing!
*Disclaimer: This blog is for informational purposes only and does not constitute investment advice. Investors should consult their financial advisor before investing. Read the RHP for more details.
About the Author
Sandip Desai is a stock market professional with over 18 years of experience in the Indian broking and investment space. He holds NISM certifications in Equity Derivatives, Currency Derivatives, Commodity Derivatives, and Mutual Fund Distribution. Sandip is passionate about simplifying financial concepts and helping investors navigate IPOs and capital markets with confidence.