Tata Capital IPO Set For Next Month, Unlisted Shares Slide 8% In A Month

Mumbai: Tata Capital is gearing up for a USD 2 billion initial public offering (IPO) as it races to meet the Reserve Bank of India’s (RBI) September 30 deadline for listing. However, the excitement in the unlisted market appears to be fading. The company’s unlisted shares have fallen over 8% in the last month, trading at around Rs 795, compared to Rs 865 a month ago. This is also 27 percent lower than its October 2024 peak of Rs 1,095, as per data from Unlisted zone.

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IPO Filing and Structure

The financial services arm of Tata Group has already submitted updated draft papers. As per the Draft Red Herring Prospectus (DRHP), the IPO will include a fresh issue of 21 crore shares and an offer for sale (OFS) of 26.58 crore shares, totalling up to 47.58 crore equity shares.

Of this, Tata Sons (which owns 88.6 percent of Tata Capital) will sell 23 crore shares, while International Finance Corporation (IFC) will sell about 3.58 crore shares from its small 1.8 percent holding.

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One of the Biggest Financial Listings

If successful, this IPO will be among the biggest in India’s financial sector and also Tata Group’s second major listing in recent times, after Tata Technologies’ strong debut in November 2023. Importantly, the listing will also help Tata Capital meet the RBI mandate requiring large non-banking finance companies (NBFCs) to go public within three years of their “upper-layer” classification. Tata Capital was included in this list in September 2022.

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Strong Earnings Growth

Tata Capital’s financial performance adds weight to the IPO story. In the June 2025 quarter, the company reported a net profit of Rs 1,041 crore, more than double the Rs 472 crore it earned a year earlier. Total income also grew to Rs 7,692 crore from Rs 6,557 crore in the same period last year.

The IPO is being managed by a strong group of banks including Axis Capital, Kotak Mahindra Capital, BNP Paribas, HDFC Bank, HSBC, Citigroup, ICICI Securities, IIFL, SBI Capital Markets, and JP Morgan India.