Tata Capital to Launch India’s Biggest Fintech IPO on September 22, 2025: A Landmark for Financial Sector
Tata Capital, the financial services arm of the $165 billion Tata Group, is set to launch a $2 billion (₹17,200 crore) Initial Public Offering (IPO) on September 22, 2025, potentially marking it as India’s largest fintech IPO to date. Valued at approximately $11 billion, this IPO complies with the Reserve Bank of India’s (RBI) mandate for upper-layer non-banking financial companies (NBFCs) to list by September 30, 2025. The offering, comprising 47.58 crore shares, includes a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares, with Tata Sons offloading 23 crore shares and the International Finance Corporation (IFC) divesting 3.58 crore shares. This move follows the successful listing of Tata Technologies in November 2023, signaling the Tata Group’s strategic expansion in public markets.
Latest Updates
As of August 31, 2025, Tata Capital has received approval from the Securities and Exchange Board of India (SEBI) for its updated Draft Red Herring Prospectus (DRHP) filed in August, paving the way for the IPO launch. The company is on an investor roadshow, with Kotak Mahindra Capital and Cyril Amarchand Mangaldas as key advisors, and additional bankers expected to join by January 2025. The IPO is anticipated to debut on the BSE and NSE by September 30, 2025. Market sources highlight strong investor interest, driven by Tata Capital’s robust financials: a loan book of ₹2.26 lakh crore as of March 2025, a 37% compound annual growth rate (CAGR) from FY23 to FY25, and a profit after tax of ₹3,646.6 crore in FY25, up 10% CAGR. The company’s Q1 FY26 net profit surged 120% to ₹1,041 crore, reflecting sustained growth. Asset quality remains strong, with gross bad loans at 1.9% and net bad loans at 0.8%, supported by a 58.5% provision coverage ratio.
Key highlights:
- The IPO aims to strengthen Tata Capital’s Tier-1 capital base for future lending.
- Tata Sons holds an 88.6% stake, IFC 1.8%, with the rest owned by Tata Investment Corporation and others.
- Unlisted shares are trading at ₹1,050, valuing the company at nearly ₹3.8 lakh crore.
Tata Capital IPO Details
The following table outlines the key aspects of the Tata Capital IPO, based on recent filings and market reports.
| Aspect | Details |
|---|---|
| IPO Size | $2 billion (₹17,200 crore) |
| Valuation | ~$11 billion (₹92,000 crore) |
| Total Shares Offered | 47.58 crore (21 crore fresh issue, 26.58 crore OFS) |
| OFS Breakdown | Tata Sons: 23 crore shares; IFC: 3.58 crore shares |
| Current Ownership | Tata Sons: 88.6%, IFC: 1.8%, Others: 9.6% |
| Launch Date | September 22, 2025 |
| Listing Date (Tentative) | September 30, 2025 |
| Exchanges | BSE and NSE |
| Purpose | Strengthen Tier-1 capital, support onward lending, regulatory compliance |
| Financial Snapshot | Loan book: ₹2.26 lakh crore; PAT FY25: ₹3,646.6 crore; Q1 FY26 PAT: ₹1,041 crore |
*Note: Price band and lot size to be announced closer to the launch date; figures are based on DRHP and market estimates.
Past History of Tata Group IPOs
The Tata Group has a storied history of public listings, starting with Tata Consultancy Services (TCS) in 2004, which raised ₹4,713.47 crore and remains a flagship company. After a 19-year gap, Tata Technologies debuted in November 2023 with a ₹3,042.51 crore IPO, listing at a 140% premium. Tata Capital’s IPO will be the group’s second in two years, driven by RBI’s September 2023 classification of Tata Capital and Tata Sons as upper-layer NBFCs, mandating listing within three years. The group has restructured operations, merging Tata Capital Financial Services, Tata Cleantech Capital, and Tata Motors Finance into Tata Capital by May 2025, enhancing its lending portfolio. Previous NBFC listings, like Bajaj Housing Finance’s 135% premium debut in September 2024, set a bullish precedent for Tata Capital.
Future Scopes and Outlook
The Tata Capital IPO is poised to reshape India’s fintech landscape, potentially surpassing HDB Financial Services’ ₹12,500 crore IPO in June 2025 as the largest in the financial sector. With a network of over 1,400 branches and 7 million customers, Tata Capital’s diversified offerings—commercial finance, consumer loans, wealth management, and Tata Cards—position it for sustained growth. Analysts project a post-IPO valuation increase if listing premiums mirror recent NBFC trends. However, risks include market volatility and high gearing (6.5 times as of March 2025). The IPO aligns with India’s broader IPO boom, with firms like Reliance Jio and LG Electronics India planning 2025 listings. Tata Group’s pipeline, including potential IPOs for Big Basket and Tata Passenger Electric Mobility, suggests continued market expansion. Investors should monitor price band announcements and grey market premiums for strategic decisions.
Fintech IPO Dynamics and Investor Opportunities
Tata Capital’s $2 billion IPO, launching September 22, 2025, underscores its pivotal role in India’s financial sector, offering investors a chance to tap into a robust NBFC with strong fundamentals. As India’s biggest fintech IPO, it highlights themes like Tata Capital IPO, RBI regulations, and financial services growth. Stakeholders should review the prospectus and consult advisors to navigate this landmark opportunity, with subscription updates expected post-launch.
