Tata Capital Limited has officially announced the launch of its Initial Public Offering (IPO), which is slated to commence on Monday, October 6, 2025. The announcement was made during a press conference held in Jaipur, where key executives from the company outlined the details of this much-anticipated financial move.
Rajiv Sabharwal, the Managing Director and Chief Executive Officer of Tata Capital Limited, along with Chief Financial Officer Rakesh Bhatia, shared insights into the IPO’s structure and strategy. They revealed that the share price range for the IPO has been set between Rs 310 and Rs 326 per equity share, with the subscription period running from October 6 to October 8.
The IPO encompasses a total of 45.58 crore equity shares, which includes a fresh issuance of up to 21 crore shares alongside an offer for sale (OFS) amounting to 26.58 crore equity shares from existing stakeholders. This strategic move is anticipated to generate substantial capital, aiding Tata Capital in its future growth endeavors and expansion strategies. Detailed information regarding the total issue size, allocation for investors, and the expected listing date will be disclosed in the upcoming official prospectus.
During the media briefing, Rajiv Sabharwal elaborated on the IPO’s significance. “Our equity offering is set to open on the 6th and will be available until the 8th. We aim to raise Rs 15,500 crore, which includes both primary and secondary components. A portion of this is our primary raise, while there is a 6 percent dilution from Tata Sons and IFC Washington. Notably, the pricing of this offering is approximately 5 percent lower than the upper band of our previous rights issue, a strategy designed to attract more retail investors to Tata Capital,” he stated.
Sabharwal also highlighted the company’s robust performance in the financial sector, noting that Tata Capital has experienced substantial growth exceeding 25 percent over the past few years, coupled with the lowest credit costs in the industry. “Prior to the merger with Tata Motor Finance, our credit costs consistently remained below 1 percent,” he remarked to ANI.
He further emphasized the resilience of the company’s business model, which has proven to be effective in both favorable and challenging market conditions. This resilience is attributed to a well-diversified portfolio that encompasses more than 25 distinct products. “Our offerings span various segments, including consumer loans, housing finance, SME lending, and corporate financing. Approximately 88-89 percent of our portfolio is concentrated in the retail and SME sectors, ensuring a well-balanced distribution. Moreover, over 98 percent of our loans are below ₹1 crore, which adds to the granularity of our lending book,” he elaborated.
The impending IPO marks a significant milestone for Tata Capital, a subsidiary of the Tata Group, which has been a key player in the Indian financial services landscape. With a strong focus on retail and SME lending, the company is positioning itself for continued growth in a rapidly evolving market. By opening its doors to public investment, Tata Capital aims to leverage the funds raised to enhance its service offerings and expand its market reach.
The company’s leadership is optimistic that this move will not only solidify its financial foundation but also enhance its reputation among investors and customers alike. As the IPO date approaches, market analysts and potential investors alike are keenly observing how the offering performs and what future implications it may have for Tata Capital and the broader financial sector in India.
As the countdown to October 6 begins, stakeholders are encouraged to stay informed through the official channels for more detailed announcements regarding the offering’s specifics. This IPO could potentially reshape Tata Capital’s trajectory in the coming years, making it a significant event to watch in the Indian financial markets.
