Tata Capital Set to Launch Rs 17,200 Crore IPO Soon After SEBI Nod; RHP Filing Expected in July 2025: Report

Tata Capital, a prominent non-banking financial company (NBFC) and a wholly owned subsidiary of Tata Sons, is gearing up for one of India's largest IPOs in the financial sector. According to Economic Times, this Tata company is nearing the launch of its Rs 17,200 crore initial public offering (IPO). The Securities and Exchange Board of India (SEBI) has given the green light to the company's draft documents filed confidentially.

Tata Capital IPO Expected to Launch Soon: Check Tentative Schedule

Once SEBI approves a confidential draft red herring prospectus (DRHP), companies can publicly file an updated version on the regulator's website. This step precedes the filing of the red herring prospectus (RHP), which can be submitted just before launching the IPO. Economic Times suggests that Tata Capital might file its RHP in early July. However, an email sent to Tata Capital seeking confirmation went unanswered at press time.

Tata Capital's Financial Performance and Market Valuation

In recent months, Tata Capital's unlisted shares have appreciated by 13.5%, currently trading around Rs 1,050 each. This valuation places the company at nearly Rs 3.8 lakh crore. The March quarter saw impressive financial results for Tata Capital, with consolidated net profit rising by 31% to Rs 1,000 crore from Rs 765 crore in the previous year. Operating revenue also surged by almost 50% to Rs 7,478 crore from Rs 4,998 crore.

For the fiscal year 2024-25, Tata Capital reported a profit of Rs 3,655 crore compared to Rs 3,327 crore in FY24. Total revenue increased significantly to Rs 28,313 crore from Rs 18,175 crore in the prior year.

Tata Capital IPO: Regulatory Requirements and IPO Details

The upcoming IPO is set to be one of India's largest in the financial sector. It will feature both a fresh issue of shares and an offer for sale by Tata Sons, which owns a substantial 93% stake in Tata Capital. On April 5th, Tata Capital submitted its confidential DRHP.

According to Reserve Bank of India (RBI) regulations, both Tata Sons and Tata Capital are categorized as "upper-layer" non-banking financial companies (NBFCs). This classification mandates their listing on the stock exchange by September 2025. Upper-layer NBFCs are selected based on specific criteria and must adhere to stricter regulations.

In January, RBI identified fifteen such NBFCs for listing during the years 2024-25, including Tata Capital among them.