Tata Capital Ready to Roar: SEBI Clears Path for ₹17,200 Crore IPO Spectacle

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Tata Capital, the financial services business of the Tata Group, will issue one of India's biggest-ever financial sector initial public offers (IPOs) following the clearance of its draft red herring prospectus (DRHP) by the Securities and Exchange Board of India (SEBI). The ₹17,200 crore public issue comprising a fresh issue and an offer for sale by Tata Sons is likely to open as early as July, setting a milestone for the group and the Indian capital markets.

Key Highlights

SEBI Clearance Received: SEBI has cleared Tata Capital's private DRHP filed in April 2025, paving the way for a public filing of the updated DRHP, followed by the red herring prospectus (RHP) in July.
IPO Structure: The IPO shall be an issue of new shares and an offer for sale by Tata Sons owning 93% in Tata Capital.
Regulatory Mandate: Being an "upper-layer" NBFC under RBI's tighter oversight regime, Tata Capital is required to list by September 2025, which it is doing through this IPO.
Financial Performance: Tata Capital registered a healthy 31% year-on-year growth in consolidated net profit of ₹1,000 crore during the March quarter, and a 50% rise in operating revenue to ₹7,478 crore. The profit during FY25 was ₹3,655 crore with overall revenue at ₹28,313 crore.
Market Valuation: Unlisted shares of Tata Capital have appreciated 13.5% over the last six months to around ₹1,050 per share and valued the company at around ₹3.8 lakh crore.
Investor Demand: The IPO will witness strong domestic and overseas investor demand, especially in the wake of Tata Capital's recent rights issue and strong financials.
Tata Group Milestone: After listing, Tata Capital will be the 17th Tata Group entity to list on the exchanges, further consolidating the group's presence in the Indian stock markets.

What's Next?

With SEBI clearance, Tata Capital will file its RHP in the first week of July. The IPO, following the confidential filing path facilitated by SEBI since 2022, is being closely observed as a bellwether for India financial sector listings this year.

Source: Economic Times, NewsBytes, Financial Express, NDTV Profit, HDFC SKY