Source: SEBI
Tata Capital Limited has announced the launch of its Initial Public Offering (IPO), comprising a fresh issue of up to 210 million equity shares and an offer for sale of up to 265.82 million equity shares, aggregating to a total of up to 475.82 million equity shares.
The offering consists of:
- Fresh Issue: 210,000,000 equity shares (₹[●] million)
- Offer for Sale: 265,824,280 equity shares (₹[●] million)
- Promoter Selling Shareholder: Tata Sons Private Limited – 230,000,000 shares (₹[●] million)
- Investor Selling Shareholder: International Finance Corporation – 35,824,280 shares (₹[●] million)
The IPO includes a reservation of 1.2 million shares for eligible employees. The remaining portion constitutes the Net Offer, which will be distributed among Qualified Institutional Buyers (QIBs), Non-Institutional Bidders, and Retail Individual Bidders according to SEBI ICDR regulations.
Key Dates:
- Anchor Investor Bidding: October 3, 2025
- IPO Opens: October 6, 2025
- IPO Closes: October 8, 2025 (UPI mandate cutoff: 5:00 PM)
Book Running Lead Managers (BRLMs):
- Kotak Mahindra Capital Company Ltd.
- HSBC Securities and Capital Markets
- Axis Capital Ltd.
- ICICI Securities Ltd.
- BNP Paribas
- IIFL Capital Services Ltd.
- Citigroup Global Markets India Pvt. Ltd.
- J.P. Morgan India Pvt. Ltd.
Use of Proceeds:
- Fresh Issue: Net proceeds will augment Tata Capital’s Tier-I capital, enabling further lending, business expansion, and compliance with RBI capital adequacy norms.
- Offer for Sale: Proceeds will go to the selling shareholders; Tata Capital will not receive any funds from this portion.
IPO Allocation Structure:
- Up to 50% of the Net Offer reserved for QIBs (up to 60% of which may go to Anchor Investors).
- Minimum 35% for Retail Individual Bidders.
- Minimum 15% for Non-Institutional Bidders.
- Employee Reservation Portion allocated proportionately among eligible employees.
All investors (except Anchor Investors) must participate via ASBA or UPI mechanisms.
About Tata Capital Limited
Flagship of Tata Group: Tata Capital is the financial services arm of the Tata Group, a business conglomerate with over 150 years of legacy, operating across 10 verticals including automotive, technology, steel, financial services, aerospace & defense, and consumer & retail. According to the Brand Finance India 100, 2025 report, Tata is the most valuable brand in India.
Customer Base & Lending Portfolio:
- 7.3 million customers served as of June 30, 2025.
- Offers a suite of 25+ lending products across Retail, SME, and Corporate finance.
- Retail and SME loans form 87.5% of total gross loans.
- Granular loan portfolio: over 98% of accounts have tickets below ₹10 million; 80% of total loans are secured.
Distribution Network & Digital Presence:
- 1,516 branches across 27 states and UTs as of June 30, 2025.
- Strong omni-channel presence combining branches, partners (DSAs, OEMs, dealers, digital partners), and digital platforms.
- Branch network growing at 58.3% CAGR from March 31, 2023, to June 30, 2025.
Lending Verticals:
| Vertical | Focus | % of Total Gross Loans (as of June 30, 2025) |
|---|---|---|
| Retail Finance | Home loans, personal loans, vehicle loans, business loans, microfinance, education loans | 61.3% |
| SME Finance | Supply chain finance, equipment finance, term loans, infrastructure finance | 26.2% |
| Corporate Finance | Large corporates: term loans, cleantech & infrastructure finance, developer finance | 12.5% |
Tata Capital’s omni-channel model ensures comprehensive customer engagement from acquisition to loan servicing, with a mix of in-house teams and strategic partnerships.
Tata Capital Limited IPO: Merger with TMFL and Company Strengths
Merger with TMFL:
Tata Capital has successfully completed its merger with Tata Motors Finance Limited (TMFL) pursuant to a scheme of arrangement approved by the National Company Law Tribunal, Mumbai, on May 1, 2025. Following the merger, effective May 8, 2025, 183,867,495 equity shares were allotted to TMF Holdings Limited, and TMFL’s entire business, including assets and liabilities, has been integrated into Tata Capital. The appointed date for the merger was April 1, 2024. This merger strengthens Tata Capital’s lending capabilities and expands its customer base.
Non-Lending Businesses:
In addition to its core lending business, Tata Capital operates non-lending businesses, including:
- Distribution of third-party products – Insurance, credit cards.
- Wealth management services – Catering to high-net-worth and retail clients.
- Private equity (PE) business – Focused on Growth (urbanisation, manufacturing, strategic services) and Healthcare (pharmaceuticals, hospitals, diagnostics, contract research).
- Currently raising Fund III for Growth and Healthcare themes.
- Managing three other thematic funds (Opportunities, Innovations, Special Situations) nearing full exit.
- Launching a new Decarbonization Fund.
Key Strengths of Tata Capital
1. Flagship Financial Services Company of Tata Group:
- Part of the Tata Group, India’s most valuable brand (Brand Finance India 100, 2025).
- Over 150 years of legacy, with operations across 10 verticals and 100+ countries, employing over 1 million people.
- Tata Sons Private Limited, the promoter, holds 88.6% equity and has infused ₹89.7 billion since 2007.
2. Third Largest Diversified NBFC in India:
- Total Gross Loans: ₹2,334 billion as of June 30, 2025.
- TCHFL (housing finance subsidiary) loans: ₹711.5 billion, growing at 32.6% CAGR over two years.
- Offers a suite of 25+ lending products across Retail, SME, and Corporate customers.
- Diversified loan portfolio – no single product contributes more than 20% of total loans, minimizing concentration risks.
3. Omni-Channel Distribution Model:
- Combines pan-India branches, partner networks, and digital platforms.
- 1,516 branches across 27 states and UTs, supported by digital tools for DSAs, OEMs, and dealers.
- Tata Capital mobile apps downloaded 21.9 million times; website traffic reached 75.8 million visits in FY2025.
4. Prudent Risk Culture and Strong Asset Quality:
- One of the lowest Gross Stage 3 and Net Stage 3 ratios among large diversified NBFCs (June 30, 2025).
- Robust risk management covering credit, operational, market, information security, and fraud risks.
- Advanced data analytics support underwriting, collections, and cross-selling, driving sustainable growth.
5. Highest Credit Ratings and Diverse Liability Profile:
- Rated AAA (stable outlook) by CRISIL, ICRA, CARE, and India Ratings; Commercial Papers rated A1+.
- S&P Global Ratings: Long-term ‘BBB/Stable’ (upgraded August 2025), short-term ‘A-2’.
- Fitch Ratings: Long-term foreign and local currency IDRs ‘BBB-’, stable outlook.
6. Consistent Financial Performance:
- Profitable since inception in 2007, demonstrating resilience and sustainability.
7. Experienced Management Team:
- Led by a seasoned leadership team with extensive retail, commercial, and corporate lending experience.
- Governance oversight provided by five independent directors on the Board of eight directors.
Lending Business Overview (June 30, 2025)
Our lending portfolio primarily serves Retail and SME customers, which together accounted for 87.5% of total gross loans as of June 30, 2025.
| Segment | Gross Loans (₹ mn) | % of Total Gross Loans | CAGR (Mar 31, 2023 – Jun 30, 2025) | Gross Stage 3 Ratio | Net Stage 3 Ratio | PCR |
|---|---|---|---|---|---|---|
| Retail Finance | 1,430,954.4 | 61.3% | 39.0% | 3.0% | 1.5% | 52.1% |
| SME Finance | 612,274.7 | 26.2% | 21.9% | 0.7% | 0.2% | 68.6% |
| Corporate Finance | 290,756.4 | 12.5% | 44.0% | 0.2% | 0.1% | 71.2% |
Key Lending Products and Performance Highlights
1. Home Loans
- Gross Loans: ₹401,590.9 mn (17.2% of total loans)
- CAGR: 30.4%
- Average Ticket Size: ₹3.2 mn | Tenor: up to 30 years | Avg. Interest Rate: 9.8%
- Affordable Home Loans: ₹86,836.6 mn (3.7% of total), CAGR 43.9%, Avg. Ticket: ₹1.9 mn, Rate: 11.3%
2. Loans Against Property (LAP)
- Gross Loans: ₹278,109.3 mn (11.9% of total) | CAGR: 27.2% | Avg. Ticket: ₹1.6 mn | Tenor: up to 20 years | Rate: 11.4%
- Affordable LAP: ₹51,276.1 mn (2.2%), CAGR 42.7%, Avg. Ticket: ₹0.7 mn, Rate: 12.9%
3. Personal Loans
- Gross Loans: ₹152,815.0 mn (6.5%) | CAGR: 21.3% | Avg. Ticket: ₹0.4 mn | Tenor: up to 7 years | Rate: 16.0%
4. Business Loans & Secured Business Loans
- Business Loans: ₹93,727.7 mn (4.0%), CAGR: 33.3%, Avg. Ticket: ₹1.2 mn | Tenor: up to 5 years | Rate: 17.8%
- Secured Business Loans: ₹545.0 mn (0.02%), Avg. Ticket: ₹0.9 mn | Tenor: up to 15 years | Rate: 17.9%
5. Vehicle Loans
- Two-Wheeler Loans: ₹71,000.2 mn (3.0%), CAGR: 34.5%, Avg. Ticket: ₹0.1 mn | Tenor: up to 5 years | Rate: 20.3%
- Car Loans: ₹56,616.8 mn (2.4%), CAGR: 34.1%, Avg. Ticket: ₹0.7 mn | Tenor: up to 7 years | Rate: 14.5%
- Commercial Vehicle Loans: ₹246,996.7 mn (10.6%), CAGR: 271.6%, Avg. Ticket: ₹1.6 mn | Tenor: up to 5 years | Rate: 12.1%
6. Construction & Equipment Finance
- Construction Equipment Loans: ₹58,829.3 mn (2.5%), CAGR: 7.4%, Avg. Ticket: ₹7.7 mn | Tenor: up to 5 years | Rate: 11.5%
- Equipment Finance: ₹20,170.9 mn (0.9%), CAGR: 12.8%, Avg. Ticket: ₹16.3 mn | Tenor: up to 5 years | Rate: 11.4%
7. Loans Against Securities (LAS)
- Gross Loans: ₹42,091.6 mn (1.8%), CAGR: 50.1%, Avg. Ticket: ₹2.8 mn | Tenor: up to 1 year | Rate: 10.1%
8. Microfinance Loans
- Gross Loans: ₹23,799.5 mn (1.0%), CAGR: 100.3%, Avg. Ticket: ₹0.05 mn | Tenor: up to 3 years | Rate: 25.5%
9. Education Loans
- Gross Loans: ₹4,466.1 mn (0.2%), Avg. Ticket: ₹3.5 mn | Tenor: up to 15 years | Rate: 11.8%
10. Supply Chain Finance
- Gross Loans: ₹149,047.1 mn (6.4%), CAGR: 11.4%, Avg. Ticket: ₹33.5 mn | Tenor: up to 1 year | Rate: 10.9%
11. Leasing Solutions
- Gross Loans: ₹29,566.5 mn (1.3%), CAGR: 12.8%, Avg. Ticket: ₹168.3 mn | Tenor: up to 15 years | Rate: 11.6%
12. Term Loans (SME & Corporate)
- Gross Loans: ₹369,395.4 mn (15.8%), CAGR: 32.8%, Avg. Ticket: ₹258.3 mn | Tenor: up to 8 years | Rate: 10.9%
13. Cleantech & Infrastructure Finance
- Gross Loans: ₹205,663.6 mn (8.8%), CAGR: 35.0%, Avg. Ticket: ₹1,373.3 mn | Tenor: up to 23 years | Rate: 10.4%
14. Developer Finance
- Gross Loans: ₹129,187.7 mn (5.5%), CAGR: 35.2%, Avg. Ticket: ₹630.0 mn | Tenor: up to 7 years | Rate: 12.5%
Tata Capital Non-Lending Businesses
Beyond lending, Tata Capital operates several non-lending businesses that complement its financial offerings:
1. Distribution of Insurance and Credit Cards
- Tata Capital holds a corporate agent (composite) license from IRDAI, allowing the distribution of life, health, and general insurance products.
- As of June 30, 2025, Tata Capital had 8.6 million insurance policies in force through partnerships with 19 insurance companies.
- Since 2009, Tata Capital has been distributing “Tata Corporate Cards,” issued by SBI Cards and Payment Services Limited, with over 250,000 active cards.
- The credit card industry, which had 109.9 million cards as of March 31, 2025, is projected to reach 139.2 million by March 31, 2028, at a CAGR of 10–12%.
2. Wealth Management
- Through Tata Capital Wealth, the company provides wealth management services for high-net-worth individuals and retail clients.
- Total Assets Under Management (AUM) stood at ₹69.8 billion as of June 30, 2025, growing at a CAGR of 26.4% since Fiscal 2023.
- Tata Capital Wealth offers personalized investment solutions through dedicated wealth managers and product specialists.
- The wealth management industry in India is expected to grow from ₹37.8 trillion in 2025 to ₹47.0 trillion by 2027, at a CAGR of 12–14%.
3. Private Equity (PE) Funds
- The AIF industry is projected to grow from ₹13.5 trillion in 2025 to ₹53–56 trillion by 2030, at a CAGR of 31–33%.
- Tata Capital’s PE business focuses on Growth (urbanization, manufacturing, strategic services) and Healthcare (pharmaceuticals, hospitals, diagnostics).
- It manages eight thematic domestic funds and offshore funds via its Singapore subsidiary TCAPL.
- As of June 30, 2025, Tata Capital raised ₹70.0 billion across domestic and offshore funds over 53 deals in 15+ years.
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