Tata Capital to launch 2025’s biggest IPO on October 6:Co plans to raise ₹16,400 crore; LIC looking to have a slice of the corporate pie, says reports

Tata Group’s financial services company Tata Capital is preparing to launch its IPO. The company filed its Red Herring Prospectus (RHP) with Sebi and stock exchanges on Friday, September 26, 2025. Tata Capital plans to raise around ₹16,400 crore (approximately $1.85 billion) through this IPO. This will be the biggest issue of 2025. The company will sell a total of 47.58 crore shares. This includes 21 crore new shares (fresh issue) and sale of 26.5 crore shares (offer for sale) by shareholders like Tata Sons and International Finance Corporation (IFC). The company’s post-money equity valuation is expected to be $16.5 billion (approximately ₹1.46 lakh crore). Tata Capital’s IPO will open on October 6 The public issue will open on October 6, 2025 and close on October 8, 2025. The bidding for anchor investors will be on October 3. LIC, the country’s largest insurance company, is also preparing to make a big investment in this issue. The company filed updated draft papers, known as Draft Red Herring Prospectus (DRHP), with market regulator on August 4 for the IPO. Company had done confidential pre-filing The company had filed draft papers with Sebi for the IPO,five months ago. According to media reports, this pre-filing with the market watchdog for Tata Capital Financial Services Limited’s IPO was confidential. Sebi introduced the confidential pre-filing route in November 2022. Under this, companies get assistance in filing their DRHP without having to publicly disclose their essential business details. Tata Sons owns 93% stake in Tata Capital Tata Sons is the holding company of Tata Capital. It holds approximately 93% stake in the group’s financial services arm. The remaining stake is held by other Tata Group companies and trusts. Tata Capital has been granted the status of Upper Layer NBFC (Non-Banking Financial Company) by the Reserve Bank of India (RBI). Appointed 10 Investment Banks for Listing Tata Capital has appointed 10 investment banks as advisors for listing. These banks include Kotak Mahindra Capital, Citi, JP Morgan, Axis Capital, ICICI Securities, HSBC Securities, IIFL Capital, BNP Paribas, SBI Capital and HDFC Bank. Company joined NBFC in September 2022 According to Reserve Bank of India (RBI) rules, large NBFCs like Tata Capital had to be listed on stock exchanges by September 30. However, the company has recently received some additional time from the RBI. As per RBI’s order, upper layer NBFCs must be listed on stock markets within 3 years of receiving this recognition. Tata Capital qualified as an upper layer NBFC in September 2022. This means under RBI’s rules, Tata Capital has until September 2025 to get itself listed on the stock market. Board approval for IPO was received in February Tata Capital received board approval for IPO in February. Before the IPO, the board had also approved a rights issue of ₹1,504 crore in February. This will be the first IPO of a Tata Group company after the listing of Tata Technologies in 2023. The company’s AUM was ₹1.58 lakh crore (as of March 31, 2024). It provides personal loans, home loans, car loans, commercial vehicle loans and business loans. Additionally, it also provides credit cards and digital loans. Excellent Growth in Financials Before IPO Tata Capital has recorded excellent growth in its financial performance before the IPO. In March 2025 quarter, the company’s net profit increased by 31% to ₹1,000 crore compared to ₹765 crore in the same quarter last year. During the same period, the company’s revenue from operations increased by 50% from ₹4,998 crore to ₹7,478 crore. In the financial year 2024-25, the company’s total net profit increased from ₹3,327 crore to ₹3,655 crore on an annual basis. Meanwhile, the company’s total revenue increased from ₹18,175 crore to ₹28,313 crore.