Tata Capital IPO: The preliminary public providing (IPO) of Tata Capital will open for public subscription on Monday, October 6. The ₹15,512-crore concern, comprising a contemporary concern of 21 crore shares and a proposal on the market (OFS) of practically 26.6 crore shares, is the biggest IPO of calendar 12 months 2025. It is usually the most important ever from the Tata Group, and the biggest by any non-banking monetary firm (NBFC) in India.
The Tata Capital IPO worth band has been mounted at ₹310 to ₹326 per fairness share of a face worth of ₹10.
The mainboard concern will shut on Wednesday, October 8. Share allotment is predicted to be finalised on Thursday, October 9, and profitable bidders can anticipate the shares credited to their demat accounts on Friday, October 10. Tata Capital shares will record on the BSE and the NSE on Monday, October 13.
Tata Capital IPO: 10 key issues to know from RHP
Let’s check out 10 key issues to know from the Purple Herring Prospectus (RHP) of the Tata Capital IPO:
1. Promoter promoting shareholder
Within the OFS, Tata Sons Non-public Restricted is providing as much as 23 crore shares, and Worldwide Finance Company is offloading 3.58 crore shares of face worth of ₹10 every.
2. Tata Capital’s promoters and promoter teams
The promoter of Tata Capital is Tata Sons Non-public Restricted. As per the RHP, the corporate’s promoter holds 3,575,064,262 shares of face worth of ₹10 every, representing 88.6 per cent of the issued, subscribed and paid-up share capital of the corporate, on a completely diluted foundation.
3. Tata Capital’s administration
Tata Capital’s board contains eight administrators, together with one govt director, seven non-executive administrators, of whom 5 are impartial administrators, together with two ladies impartial administrators.
Saurabh Agrawal, 56, is the chairman and non-executive director, whereas Rajiv Sabharwal, 59, is the Managing Director and CEO of the corporate.
4. Tata Capital’s enterprise
Tata Capital is the flagship monetary companies firm of the Tata group and a subsidiary of Tata Sons Non-public Restricted, the holding firm of the Tata group and the promoter of the corporate. In response to the CRISIL Report, it’s the third-largest diversified NBFC in India.
5. Tata Capital’s monetary efficiency
Tata Capital’s revenue and curiosity revenue have seen a sustained rise over the previous few years.
As per the RHP, its curiosity revenue in FY23 was ₹11,910.90 crore, which rose to ₹16,366.47 crore in FY24 and to ₹25,719.77 crore in FY25. In Q1FY26, the corporate’s curiosity revenue stood at ₹6,931.83 crore in comparison with ₹5,995.16 crore year-on-year.
The corporate’s revenue in FY23 was ₹2,945.77 crore, which elevated to ₹3,326.96 crore in FY24 and to ₹3,655 crore in FY25. In Q1FY26, the corporate’s revenue was ₹1,040.93 crore in comparison with ₹472.21 crore year-on-year.
6. Tata Capital IPO objects
As per the RHP, the corporate will use the online proceeds of the problem to reinforce its Tier–I capital base and meet its future capital necessities, together with onward lending.
A number of the proceeds from the contemporary concern can be used in the direction of assembly supply bills.
7. Tata Capital’s friends
A number of the main listed friends of Tata Capital are: Bajaj Finance, Shriram Finance, Cholamandalam Funding and Finance Firm, L&T Finance, Sundaram Finance, and HDB Monetary Providers.
8. Danger of buyer default
The corporate states that it’s topic to buyer default dangers, together with delays or defaults in compensation of principal or curiosity on loans.
“Our gross stage 3 loans comprised 2.1 per cent, 1.7 per cent, 1.9 per cent, 1.5 per cent, and 1.7 per cent of its complete gross loans as at June 30, 2025, June 30, 2024, March 31, 2025, March 31, 2024 and March 31, 2023, respectively. Non-payment or default by our prospects could adversely have an effect on our enterprise, outcomes of operations, money flows and monetary situation,” the RHP reads.
9. Unsecured loans pose a better credit score danger
The corporate provides unsecured loans to its retail, SME and company prospects.
In response to the IPO’s RHP, Tata Capital’s unsecured gross Loans comprised 20 per cent, 22.4 per cent, 21 per cent, 24.5 per cent, and 23.1 per cent of its complete gross loans as at June 30, 2025, June 30, 2024, March 31, 2025, March 31, 2024 and March 31, 2023, respectively.
“Unsecured loans pose a better credit score danger in comparison with our secured mortgage portfolio as a result of they aren’t supported by realisable collateral that would assist guarantee an sufficient supply of compensation for the mortgage,” the corporate’s RHP reads.
10. Fee-sensitive enterprise
Volatility in rates of interest can have an effect on the corporate’s lending and treasury operations.
“Adjustments in rates of interest can considerably have an effect on our earnings and related key monetary metrics, together with internet curiosity revenue (NII), internet curiosity margin (NIM) ratio, cost-to-income ratio, return on belongings (RoA), and return on fairness (RoE), amongst others,” says the RHP.
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Disclaimer: This story is for academic functions solely. The views and suggestions expressed are these of particular person analysts or broking corporations, not Mint. We advise buyers to seek the advice of with licensed consultants earlier than making any funding selections, as market situations can change quickly and circumstances could range.
