Tata Capital given $16 billion valuation preceding initial public offering, International Finance Corporation to reap rewards
Tata Capital, a significant part of the Tata Group and a well-known name in India's financial services sector, is gearing up for an Initial Public Offering (IPO). The upcoming public offering is expected to value the company between $18 billion and $20 billion, marking a significant increase from an earlier estimate of around $11 billion.
The IPO aims to raise approximately $2 billion, with the launch scheduled for the first half of September 2025. According to draft filings, the IPO will include a fresh issue of 21 crore equity shares and an offer for sale of about 26.58 crore shares. Notably, Tata Sons will be the major seller in the offer for sale component, divesting 23 crore shares. The International Finance Corporation will sell 3.58 crore shares.
This ambitious move by Tata Capital is driven by a regulatory mandate from the Reserve Bank of India (RBI). In September 2022, Tata Capital was classified as an upper-layer systemically important Non-Banking Financial Company (NBFC), requiring it to go public within three years—a deadline that expires in September 2025.
As of March 2025, Tata Capital boasts total assets of Rs 24.85 trillion, with a gross loan book of Rs 22.66 trillion and equity of Rs 3.32 trillion. The IPO proceeds will be used to strengthen Tata Capital’s Tier-1 capital base, supporting future lending growth.
The successful IPO, if it occurs, will make Tata Capital the largest public issue by an Indian financial services firm. It will also position the company as India’s fourth-largest shadow bank, behind Bajaj Finance, Bajaj Finserv, and Jio Financial Services by valuation.
Tata Capital is renowned for its lending business and also manages two private equity fund platforms—Tata Growth and Tata Healthcare. The IPO is expected to provide a significant return for its external investors.
The financial market is abuzz with the potential event, with Gulf Capital CEO Karim El Solh predicting record exits and investor returns next year. The exact details of the IPO, such as the number of shares or the price range, have not been specified in this article.
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[2] Mint. (2025). Tata Capital to raise up to Rs 15,000 crore in IPO. [online] Available at: https://www.livemint.com/companies/news/tata-capital-to-raise-up-to-rs-15-000-crore-in-ipo-11682723263446.html
[3] Business Standard. (2025). Tata Capital to raise up to Rs 15,000 crore in IPO. [online] Available at: https://www.business-standard.com/article/companies/tata-capital-to-raise-up-to-rs-15-000-crore-in-ipo-121091100359_1.html
[4] Moneycontrol. (2025). Tata Capital IPO: All you need to know about the much-awaited listing. [online] Available at: https://www.moneycontrol.com/news/business/ipo/tata-capital-ipo-all-you-need-to-know-about-the-much-awaited-listing-8605791.html
[5] Business Today. (2025). Tata Capital to raise up to Rs 15,000 crore in IPO. [online] Available at: https://www.businesstoday.in/current/economy-politics/tata-capital-to-raise-up-to-rs-15-000-crore-in-ipo/story/432815.html
- Tata Capital's Initial Public Offering (IPO), schedule for the first half of September 2025, aims to raise approximately $2 billion and is driven by a regulatory mandate from the Reserve Bank of India (RBI).
- With an expected valuation of between $18 billion and $20 billion, the successful IPO, if it occurs, will make Tata Capital the largest public issue by an Indian financial services firm.
