Tata Capital, the financial services arm of the Tata Group, is preparing for a ₹15,000 crore ($2 billion) IPO by September 2025 to comply with RBI regulations for upper-layer NBFCs. The IPO follows Tata Technologies’ successful listing in November 2023. Tata Capital’s merger with Tata Motors Finance is underway, aiming to enhance its market position before the public offering. Investors should monitor this development for potential investment opportunities.
Tata Capital IPO – Important Dates
| Tata Capital IPO Date | Yet to be announced |
| Tata Capital IPO Listing Date | Yet to be announced |
| Tata Capital IPO Price | Yet to be announced |
| Tata Capital IPO Lot Size | Yet to be announced |
| Tata Capital IPO Total Issue Size | Yet to be announced |
| Tata Capital IPO Basis of Allotment | Yet to be announced |
| Tata Capital IPO Initiation of Refunds | Yet to be announced |
| Tata Capital IPO Credit of Shares to Demat | Yet to be announced |
| Tata Capital IPO Issue Type | Book Built Issue IPO |
| Tata Capital IPO Listing At | BSE NSE |
Tata Capital IPO – Company Profile
Tata Capital Limited, a subsidiary of Tata Sons, is India’s leading financial services provider. Established in 2007, it offers various products, including personal loans, home loans, and wealth management, catering to diverse customer needs.
The company focuses on delivering innovative financial solutions with robust risk management practices. It serves retail, corporate, and institutional clients, leveraging advanced technology and a customer-centric approach to strengthen its position in India’s competitive financial market.
Tata Capital is gearing up for its IPO, aligning with regulatory requirements for NBFCs in the upper layer. The offering aims to enhance its capital base, expand operations, and sustain its growth trajectory while maintaining its legacy of trust and excellence.
Tata Capital IPO Fundamental Analysis
Tata Capital’s financial analysis indicates robust growth across key metrics, reflecting its strong market position and effective business strategies.
Revenue Trend: The loan book increased by 35%, from ₹1,16,789 crore in FY 2022-23 to ₹1,57,761 crore in FY 2023-24, demonstrating significant growth in lending activities.
Equity and Liabilities: Total assets rose from ₹1,35,626.10 crore in March 2023 to ₹1,76,693.98 crore in March 2024, indicating a solid expansion in the company’s financial base.
Profitability: Profit After Tax (PAT) increased by 37%, from ₹2,300 crore in FY 2022-23 to ₹3,150 crore in FY 2023-24, highlighting improved profitability.
Earnings per Share (EPS): EPS grew by approximately 5%, from ₹6.47 in FY 2022-23 to ₹6.78 in FY 2023-24, indicating enhanced shareholder value.
Return on Equity (RoE): While specific RoE figures are not provided, the significant increase in PAT and stable equity base suggest an improvement in the company’s ability to generate returns on shareholder equity.
Financial Position: The Gross NPA percentage improved from 1.78% in FY 2022-23 to 1.71% in FY 2023-24, reflecting better asset quality and financial health.
These indicators underscore Tata Capital’s strong financial performance and its potential for sustained growth in the financial services sector.
Tata Capital IPO Financial Analysis
| Particulars | As of 31 March 2023 | As of 31 March 2024 |
| Revenue from Operations (₹ in crore) | 13,628.58 | 18,174.28 |
| Total Income (₹ in crore) | 13,637.49 | 18,198.38 |
| Expenses (₹ in crore) | 9,847.63 | 9,568.23 |
| Profit After Tax (₹ in crore) | 2,945.77 | 3,326.96 |
| Total Assets (₹ in crore) | 1,35,626.10 | 1,76,693.98 |
| Loans (₹ in crore) | 1,16,788.79 | 1,57,760.55 |
| Equity Share Capital (₹ in crore) | Data not available | Data not available |
| Diluted EPS (₹) | Data not available | Data not available |
Tata Capital IPO Peer Comparison
Tata Capital stands strong in the competitive NBFC sector, with ₹13,637 crore in revenue and ₹1,648 crore in profit. Its ~23% ROE and 0.63 debt-to-equity ratio reflect financial stability, positioning it as a key player alongside peers like Muthoot Finance and Aditya Birla Capital.
| Company Name | Revenue (₹ Crore) | Profit (₹ Crore) | Market Cap (₹ Crore) | ROE (%) | Debt to Equity | Price to Book Value |
| Tata Capital | 13,637 | 1,648 | Data not available | ~23.0 | 0.63 | 9.86 |
| Muthoot Finance | 9,707 | 2,385 | 29,830 | 22.41 | 2.68 | 2.81 |
| Reliance Capital | 19,303 | -226 | Data not available | -14.74 | -1.46 | Data not available |
| Aditya Birla Capital | 9,146 | 998 | 22,022 | 9.65 | 5.52 | 2.19 |
| IIFL | 5,989.4 | 2,276.01 | 18.84 | 18.14 | 5.2 | 1.77 |
| Manappuram Finance Ltd | 1.14 | 1,179 | 14,580 | 22.12 | 3.67 | 2.88 |
| Mahindra & Mahindra Financial Services Ltd | 12,700 | 1,482 | 19,895 | 17.30 | 4.97 | 1.78 |
Tata Capital IPO Objective
The primary objective of the Tata Capital IPO is to raise funds to strengthen its capital base, ensuring compliance with Reserve Bank of India regulations for non-banking financial companies (NBFCs) classified under the upper-layer category.
The IPO proceeds will be utilised to enhance Tata Capital’s financial capabilities, support business expansion, and introduce innovative financial products. This will enable the company to meet evolving customer demands and capitalise on emerging market opportunities.
Tata Capital aims to use IPO funding to diversify its services, optimise operational efficiency, and sustain long-term growth. The listing will also enhance the company’s visibility and credibility, attracting a broader investor base while maintaining its leadership in the financial services sector.
Tata Capital IPO Risks And Challenges
Tata Capital’s risks include exposure to macroeconomic conditions, borrower defaults, declining collateral values, and regulatory changes. Adverse market factors could impact financial performance, operations, and loan demand, presenting challenges to sustaining consistent growth.
India’s economic conditions significantly affect Tata Capital’s operations. Changes in interest rates, inflation, liquidity, or geopolitical tensions could negatively impact borrower repayment capacity, operational efficiency, and overall financial health during adverse market conditions.
Borrower defaults and payment delays may increase non-performing assets, negatively affecting profitability. Regulatory provisioning requirements, inaccurate credit risk assessments, or declining collateral values could further challenge financial stability and operational performance.
Tata Capital IPO – Industry & Market Potential
India’s financial services sector is witnessing robust retail credit growth, expected to maintain a 13-15% CAGR through Fiscal 2027, driven by increasing consumer demand and economic formalisation, supporting Tata Capital’s growth ambitions.
The NBFC sector, projected to grow at a 15-17% CAGR from Fiscal 2024 to 2027, plays a crucial role in retail and MSME lending. Tata Capital is poised to benefit from this sectoral expansion and rising credit demand.
The MSME segment, contributing significantly to GDP and employment, offers immense potential. Government schemes like Udyam Assist and PM Vishwakarma aim to boost formalisation and credit access, aligning with Tata Capital’s strategic focus on retail and SME growth.
Tata Capital IPO – Type of Offer
Tata Capital Limited plans a fresh issue of shares to raise ₹5,000 crores for business expansion, capital base enhancement, and future growth. Additionally, the IPO includes an offer for the sale of shares worth ₹10,000 crores.
Fresh Issue:
Tata Capital will issue new shares to raise ₹5,000 crores. The proceeds from the fresh issue will be utilised to strengthen the company’s capital base, support business expansion, and enhance operational capabilities for sustained growth.
Offer for Sale:
Tata Capital’s IPO also involves the sale of existing shares worth ₹10,000 crores. These shares are offered by existing stakeholders, reducing their ownership while providing investors with an opportunity to buy into the company.
Tata Capital IPO Offer Size
Tata Capital Limited’s IPO has a total offer size of ₹15,000 crores, comprising a fresh issue of ₹5,000 crores and an offer for sale of ₹10,000 crores by existing shareholders.
Tata Capital IPO Allotment Structure
The Tata Capital IPO will feature a mix of primary and secondary share offerings, with allocations as follows:
- Qualified Institutional Buyers (QIB): 75% of the net offer will be reserved for Qualified Institutional Buyers, including entities like banks, mutual funds, insurance companies, and other eligible institutions.
- Retail Individual Investors (RII): 10% of the net offer will be reserved for Retail Individual Investors who apply for shares worth less than ₹2 lakhs, making the IPO accessible to small investors.
- Non-Institutional Investors (NII): 15% of the net offer will be reserved for Non-Institutional Investors, such as high-net-worth individuals or corporate entities investing more than ₹2 lakhs.
This structure ensures equitable distribution across investor categories while complying with SEBI regulations.
How to apply for the Tata Capital IPO?
To apply for the Tata Capital IPO through Alice Blue, follow these steps:
- Open a Demat and Trading Account: If you don’t have one, open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, view the Tata Capital IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all details and submit your application. Alice Blue simplifies IPO applications with just a few clicks!
- Check Allotment Status: After the allotment process, check your status to see if shares have been allocated to you.
Note: Allotment of shares is not guaranteed and depends on the IPO’s demand.
How do you check Tata Capital IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is straightforward. Follow these steps:
- Log in to Your Alice Blue Account: Access the Alice Blue website or trading app.
- Navigate to the Portfolio or IPO Section: Find the section labelled ‘Portfolio’ or ‘IPO’ to locate your application status.
- Find the IPO Allotment Status: Look for the ‘IPO Allotment Status’ sub-section to view your application details.
- Select Tata Capital IPO: If you’ve applied for multiple IPOs, use the dropdown menu to select the Tata Capital IPO.
- Check the Status: View your application status to see if shares have been allocated to you.
Other Methods:
- Registrar’s Website: Visit the website of Tata Capital IPO’s registrar (e.g., Link Intime India). Enter your PAN, application, or Demat account number to check the allotment status.
- BSE/NSE Websites: You can check the allotment status on the official BSE or NSE websites by entering your application number and PAN.
Note: Allotment status will only be available after the allotment process is completed, a few days after the IPO window closes. If needed, contact Alice Blue’s customer support for assistance.
Tata Capital IPO Offer Registrar
The registrar for the Tata Capital IPO is yet to be announced. Updates regarding the appointed registrar will be provided closer to the IPO date.
Tata Capital IPO – FAQs
What is the allotment date of the Tata Capital IPO?
The allotment date of the Tata Capital IPO determines when shares will be distributed to investors. As of now, the specific date is yet to be announced.
What is the price band of the Tata Capital IPO?
The price band defines the range within which investors can bid for Tata Capital IPO shares. The exact details are yet to be announced by the company.
What is the size of the Tata Capital IPO?
The size of the Tata Capital IPO is expected to be ₹15,000 crores, including a fresh issue of ₹5,000 crores and an offer for sale worth ₹10,000 crores.
What is the listing date of the Tata Capital IPO?
The listing date indicates when Tata Capital shares will debut on the stock exchange. The company has not yet disclosed the specific listing date.
Where is the Tata Capital IPO getting listed?
Tata Capital IPO shares will likely be listed on major stock exchanges, including BSE and NSE. The exact listing details are yet to be confirmed.
What are the open and close dates of the Tata Capital IPO?
The open and close dates define the IPO’s subscription period. While it is anticipated to launch in September 2025, exact dates are yet to be announced.
How to apply for the Tata Capital IPO in Alice Blue?
To apply for Tata Capital IPO via Alice Blue, open a Demat account, check IPO details, place bids within the price band, and submit your application through the platform.
Who are the book runners for the Tata Capital IPO?
The Tata Group has appointed Kotak Mahindra Capital as the investment bank for managing the Tata Capital IPO. Additional book runners are expected to join the process later.
