Tata Capital's $2 Bn IPO Gets SEBI's Green Light, Likely to Be Biggest Listing of 2025

Tata Capital Ltd, the financial services arm of Tata Sons, has reportedly received the Securities and Exchange Board of India (SEBI)'s approval to list its shares on the exchanges, in what could be the nation’s biggest listing this year. The company plans to raise as much as $2 billion from investors during the initial public offering (IPO).

Bloomberg reported that SEBI has notified the company and its bankers of the approval, adding that the NBFC aims to launch the share sale as early as August.

The company can now update its prospectus with regulatory feedback before marketing the deal. Tata Sons is reportedly targeting a valuation of up to $11 billion.

This comes as the Indian equity market gains momentum for IPOs, with HDFC's HDB Financial Services also receiving approval to move forward with its IPO process. Hero MotoCorp’s financial unit, Hero FinCorp, is also going ahead with its listing plans.

What We Know About Tata Capital IPO

Tata Capital reported a consolidated profit after tax of ₹3,655 crore in FY25, up from ₹3,327 crore in FY24, with its total asset base rising to ₹2,48,465 crore from ₹1,76,694 crore. The company is set to launch its IPO before the Reserve Bank of India’s September deadline for upper-layer NBFCs to list.

Tata Sons, which owns 93% of Tata Capital, contributed ₹1,400 crore to the firm’s ₹1,504 crore rights issue in March. The remaining stake is held by Tata Investment Corporation Ltd., the TCL Employee Welfare Trust, and other minority shareholders.

According to ICRA, the March capital infusion raised Tata Capital’s consolidated net worth to ₹32,563 crore as of March 31, 2025. However, strong loan book growth increased the company’s gearing to 6.5 times from 6.0 times the previous year.

Despite this, solvency remained stable, with net stage 3 loans to net worth at a comfortable 5.4%, following the merger of Tata Motors Finance Ltd. into Tata Capital.