Tata Capital is set to launch its much-awaited $2 billion initial public offering (IPO) in the first half of October, according to sources cited by PTI.
The Reserve Bank of India (RBI) has granted an extension for Tata Capital, a Tata Group-led NBFC, to list its shares, extending the previous deadline which was set to expire on September 30.
IPO Valuation and Size
Tata Capital aims to raise around $2 billion (about Rs 17,000 crore) through this IPO, valuing the company at approximately $18 billion (around Rs 1.5 lakh crore).
This is a significant jump from the $11 billion valuation when the company filed confidential IPO documents in April 2025.
If successful, this IPO will be among the largest in India, possibly the fourth biggest public issue, after Hyundai Motor India (Rs 27,850 crore), Life Insurance Corporation (Rs 20,550 crore), and One97 Communications (Rs 18,300 crore).
RBI Extension and IPO Details
The RBI allowed an extension due to procedural reasons, a common practice for large IPOs. For example, NSDL’s Rs 4,000-crore IPO also received an extension before its July launch.
According to the updated Draft Red Herring Prospectus (DRHP) filed in August 2025, Tata Capital’s IPO will include:
A fresh issue of up to 21 crore equity shares
An offer for sale (OFS) of up to 26.58 crore shares
Totaling 47.58 crore shares
Tata Sons, the promoter, plans to sell up to 23 crore shares, and the International Finance Corporation (IFC) will offload up to 3.58 crore shares.
Pre-IPO Market Price vs Expected IPO Price
Dealers estimate the IPO price to be around Rs 350-380 per share, aiming to raise Rs 17,000-18,000 crore.
However, in the pre-IPO unlisted market, Tata Capital shares currently trade at Rs 750-775, down over 30% from a recent high of Rs 1,100.
This means the IPO price could be roughly 50% lower than current unlisted market prices.
Use of IPO Proceeds and Rights Issue
Proceeds from the fresh share issue will be used to strengthen Tier-I capital and support lending growth.
In June 2025, Tata Capital’s board approved a rights issue to raise Rs 1,751.85 crore by offering over 5 crore shares at Rs 343 each. This rights issue was open from July 4 to July 13.
Significance of the IPO
If successful, Tata Capital’s IPO will be the largest in India’s financial sector and mark the Tata Group’s second public listing in recent years, after Tata Technologies’ debut in November 2023.
The IPO also fulfills the RBI’s listing mandate for upper-tier NBFCs to go public within three years of their classification.
Global Investor Roadshows and Strong Financials
Tata Capital recently completed investor roadshows in major financial hubs including Hong Kong, Singapore, London, New York, and key Indian cities.
The roadshows, which began in August, attracted strong interest from both global and domestic institutional investors.
In Q1FY26, Tata Capital posted impressive results, with a net profit of Rs 1,041 crore, more than double the Rs 472 crore from the same period last year.
Total income rose to Rs 7,692 crore from Rs 6,557 crore in Q1FY25.
