Tata Capital Limited, the pivotal NBFC and financial services arm of the legendary Tata Group, is all set to make IPO history in 2025. Following RBI’s mandate for upper-layer NBFCs to list and after SEBI’s green light in July, Tata Capital’s ₹17,200 crore IPO is poised to top the year’s fundraising charts. Its listing is set to unlock value for Tata Group and offer investors a formidable play on India’s booming credit cycle, digital finance, and “formalisation” megatrend.
Table of Contents
- About Tata Capital: Company Background
- Tata Capital’s Business Model & Operating Segments
- FY25 Financial Highlights from DRHP
- Tata Capital IPO Structure, Objectives & Use of Proceeds
- Selling Shareholders & Shareholding Pattern
- SWOT Analysis: Tata Capital 2025
- Key Risks & Market Challenges
- Peer Comparison & Valuation
- FAQs: Tata Capital IPO
Tata Capital Limited is one of the largest NBFCs-ICC (Investment and Credit Companies) in India, serving 5.2+ million customers through 900 branches. It is a trusted pan-India lender across retail, SME, corporate, and specialised verticals.
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Promoter: Tata Sons (88.6% pre-IPO)
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Incorporated: 2007
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AUM FY25: ₹2.2 lakh crore
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Credit Rating: AAA (CRISIL, ICRA, CARE)
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Customer Connect: Loans, cards, wealth, investment banking, digital finance
Key Subsidiaries & Verticals:
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Tata Capital Financial Services (retail, SME, commercial loans)
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Tata Capital Housing Finance (home loans, LAP, construction finance)
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Tata Cleantech Capital (sustainable finance/infra lending)
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Tata Securities (wealth/investment banking)
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Retail Lending: Personal, home, auto, gold loans, credit cards - drives majority of growth.
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Commercial Finance: SME, working capital, supply chain, corporate and project finance.
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Structured & Infrastructure Finance: Large-ticket loans, green project finance (via Tata Cleantech Capital - a JV).
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Wealth Management & Distribution: Investments, insurance, mutual funds, and advisory under Tata Securities.
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Digital Push: Industry-leading app and digital onboarding/servicing for retail and SME borrowers.
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Risk & Asset Quality: Focused on prime borrowers and secured lending, but with growing “new to credit” and MSME expansion.
Revenue primarily flows from net interest margin on lending books, with supplementary income from distribution, fee-based advisory, and investment activity.
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| Metric (₹ Crore) |
FY25 |
FY24 |
| Revenue from Operations |
28,370 |
18,198 |
| Total Income |
28,370 |
18,198 |
| EBITDA |
4,922 |
4,692 |
| EBITDA Margin (%) |
17.4 |
25.8 |
| Profit After Tax (PAT) |
3,655 |
3,327 |
| PAT Margin (%) |
12.9 |
18.3 |
| Gross NPA (%) |
2.33 |
1.71 |
| Net NPA (%) |
0.98 |
0.38 |
| Net Worth |
32,587.8 |
— |
| Advances (Loans) |
2,21,950 |
1,57,761 |
Trends & Insights:
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FY25 revenue grew a stunning 55.9% Y-o-Y - driven by lending momentum and digital expansion.
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PAT rose 9.9% to ₹3,655 crore, with steady EPS growth.
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Gross NPA and Net NPA have increased slightly but remain manageable for the asset class; higher provisions have protected profit quality.
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EBITDA margin is down (reflects scaling & asset quality provisioning).
| Parameter |
Details |
| Total Shares Offer |
47.58 crore (475.8 million) |
| Fresh Issue |
21 crore shares (~₹8,400 crore est.) |
| Offer for Sale (OFS) |
26.58 crore shares (~₹10,600 crore est.) |
| Promoter Seller |
Tata Sons (23 crore shares) |
| Other Seller |
International Finance Corp (3.58 crore) |
| Target Valuation |
~₹1.48 lakh crore |
| Expected Price Band |
₹375–400 per share (est.) |
| Listing Deadline |
September 2025 (RBI NBFC upper layer rule) |
IPO Objectives:
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Augment Tier-I Capital: Fund growth and lending capacity, meeting RBI’s NBFC norms.
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Support AUM Expansion: Provide fuel for the next phase of loan book and sectoral expansion.
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Meet Listing Mandate: RBI mandates upper-layer NBFCs to be listed.
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1. Tata Sons (Majority Shareholder)
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Pre-IPO Holding: 88.6%
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Post-IPO Change: Plans to sell 23 crore shares via OFS (Offer for Sale).
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Expected Post-IPO Holding: Will retain over 75%, ensuring strong control post-listing.
2. International Finance Corporation (IFC) (Minority Investor)
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Pre-IPO Holding: 1.8%
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Post-IPO Change: Selling 3.58 crore shares in the IPO.
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Impact: Partial exit, reducing its stake further post-listing.
3. Institutional & Other Investors
Key Takeaway:
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The IPO will increase public float (free float shares available for trading).
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Despite stake dilution, Tata Sons will retain dominant control (>75%), ensuring stability post-listing.
(Note: Exact post-IPO percentages will depend on final issue size and pricing, which are yet to be disclosed.)
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| Strengths |
Weaknesses |
| Tata Group branding & deep capital access |
Lower ROE and PAT margin vs top peers |
| Pan-India reach across all key lending segments |
Growing asset quality pressure (higher NPA) |
| Tech-driven, diversified business model |
Margin dilution due to competitive pricing |
| AAA rating-low funding cost, strong credibility |
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| Opportunities |
Threats |
| NBFC sector, SME, and MSME credit boom in India |
Macro, interest rate, and policy risks |
| Cross-selling via wealth, insurance, and digital |
Intense rivalry from banks/NBFC titans |
| “Green” finance via Tata Cleantech, new lending verticals |
Asset quality shocks from fast expansion |
| Government schemes for financial inclusion, MSMEs |
Regulatory changes (e.g., RBI norms) |
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Macroeconomic Sensitivity: Demand for loans, NPA cycles, and collections can swing with the economy.
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Competition: Faces entrenched players like Bajaj Finance, L&T Finance, Shriram Finance, and banks.
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Asset Quality: Higher NPAs and increased provisioning as the loan book grows (noted in FY25).
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Regulatory & Interest Rate Risk: NBFCs remain exposed to policy changes and funding cost swings.
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Valuation: IPO likely at a premium to most NBFC peers; investors must factor in growth, not just headline PAT.
1. Revenue & Profitability
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Tata Capital: ₹28,370 Cr revenue, ₹3,655 Cr PAT.
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Bajaj Finance (Leader): ₹48,100 Cr revenue, ₹15,400 Cr PAT.
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L&T Finance: ₹18,500 Cr revenue, ₹2,300 Cr PAT.
2. Efficiency & Valuation
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ROE: Bajaj Finance (19.2%) > L&T Finance (10.8%) ≈ Tata Capital (~10.6%).
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P/E Ratio: Tata Capital (~41x) trades at a premium to Bajaj (34.6x) and L&T (19.5x).
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Market Cap: Tata Capital (₹1.48 Lakh Cr) trails Bajaj (₹5.78 Lakh Cr) but surpasses L&T (₹51,600 Cr).
3. Key Takeaway
Tata Capital’s valuation reflects brand trust and growth potential, though Bajaj remains the profitability leader.
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Q1: What’s the IPO offer structure?
A: 47.58 crore shares (21 crore fresh, 26.58 crore OFS, main sellers: Tata Sons, IFC).
Q2: What will Tata Capital use IPO proceeds for?
A: To boost Tier-I capital, scale lending, and comply with RBI listing directions.
Q3: What is Tata Capital’s FY25 performance?
A: ₹28,370 crore revenue, ₹3,655 crore PAT, asset book of ₹2.2 lakh crore.
Q4: Who are the major sellers in the OFS?
A: Tata Sons (23 crore shares), International Finance Corporation (3.58 crore shares).
Q5: When will Tata Capital list?
A: By September 2025 (regulatory deadline for NBFC-UL).
Q6: What sets Tata Capital apart?
A: Trusted Tata brand, scale, diversified products, AAA credit, broad distribution, and digital focus.