Tata Capital IPO, one of the most closely watched listings in India’s financial sector, is all set to open on October 6, 2025. As the main financial services arm of the Tata Group and a subsidiary of Tata Sons Private Limited, Tata Capital Limited has built a strong presence since the start of its lending operations in 2007.
With a customer base of 73 lakhs as of June 30, 2025, and classification by the Reserve Bank of India as an Upper Layer NBFC, the company is ready to enter the capital markets with a fresh issue of 21 crore shares along with an Offer for Sale of 26.58 crore shares as part of the Tata Capital IPO issue size.
In this article, we’ll break down all the key Tata Capital IPO details, including IPO dates, lot size, price band, and minimum investment. We’ve covered the business model, issue size, financial performance, peer comparison, and Tata Capital IPO SWOT analysis.
Tata Capital IPO Dates
Tata Capital Limited, supported by Tata Sons, has submitted a Red Herring Prospectus (RHP) to the Securities and Exchange Board of India (SEBI) on September 26, 2025, marking a significant step in the Tata Capital IPO process.
Here are the important dates of the Tata Capital IPO you must know:
- Bidding Opening Date: October 6, 2025
- Bidding Closing Date: October 8, 2025
- Allotment Date: October 9, 2025
- Initiation of Refunds (in case of less or no allotment): October 10, 2025
- Shares Credited to Your Demat Account: October 10, 2025
- IPO Listing Date: October 13, 2025
- Listing on Exchange: BSE and NSE
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Tata Capital IPO Details: Issue Size & Structure
There will be a Tata Capital IPO book-building process through which it will raise more than ₹15,000 crores. Tata Capital IPO valuation, as denoted by the market capitalisation, stood at ₹1,38,383 crores.
Here are the essential details:
- Tata Capital IPO Price Band: ₹310 to ₹326 per share
- Lot Size: 46 Shares
- Total Issue Size and Amount: 47.58 crore shares (aggregating up to ₹15,511.87 crores)
- Fresh Issue Size and Amount: 21 crore shares (aggregating up to ₹6,846 crores)
- OFS and Amount: 26.58 crore shares (aggregating up to ₹8,665.87 crores)
Tata Capital IPO Reservations
Tata Capital IPO reservations to different investors are:
- For QIBs: Not more than 50% of the Net Issue
- For NIIs: Not less than 15% of the Net Issue
- For Retail Investors: Not less than 35% of the Net Issue
Tata Capital IPO Lot Size
Tata Capital IPO lot size is 46 shares, wherein bidding can be done in multiples. The minimum amount that each category of investor needs to bid in this IPO is:
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 46 | ₹14,996 |
| S-HNI (Min) | 14 | 644 | ₹2,09,944 |
| B-HNI (Min) | 67 | 3,082 | ₹10,04,732 |
Tata Capital IPO Price, GMP & Valuation Insights for Retail Investors
As of September 28, 2025, Tata Capital shares are trading at ₹326 in the unlisted market. Just a month ago, shares were trading above ₹750. With a set price band of ₹310 to ₹326 per share, this pricing strategy shows more than 55% discount from the Tata Capital share unlisted price.
Such a discount is expected to spark strong Tata Capital IPO subscription status momentum from both retail and institutional investors. The IPO is likely to attract strong interest due to Tata Capital’s solid fundamentals and brand trust.
Here are the details of the Tata Capital IPO GMP (as of September 29 at 12:59):
- GMP: ₹27
- Estimated gain: 8.28%
- Estimated Listing Price: ₹353
Use of IPO Proceeds: Tata Capital’s Capital Strategy Explained
As part of the much-anticipated Tata Capital IPO, the company has outlined a clear plan for using the funds raised from the public offering. This includes money from both the new issue and the Offer for Sale (OFS). Understanding this strategy is important for retail investors assessing the Tata Capital upcoming IPO with a long-term value and sustainability focus.
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Proceeds from Offer for Sale (OFS)
The Offer for Sale (OFS) part of the Tata Capital IPO involves the sale of up to 26.58 crore shares by current shareholders, including Tata Sons and International Finance Corporation (IFC). The money raised will go directly to the selling shareholders.
Each shareholder will get their share of the proceeds based on the number of shares sold, after deducting any offer-related expenses and taxes. It’s important to understand that the company will not receive any money from this part of the Tata Capital upcoming IPO.
Key Points:
- Tata Sons to sell up to 23 crore shares
- IFC (International Finance Corporation) to sell up to 3.58 crore shares
- OFS proceeds used by shareholders, not Tata Capital Limited
- Proportional expense and tax deductions apply
Proceeds from Fresh Issue: Strengthening Tata Capital’s Balance Sheet
The fresh issue of up to 21 crore equity shares aims to increase Tata Capital Limited’s Tier-I capital base. This will help the company maintain financial strength as it grows its lending business. This decision follows RBI rules for Upper Layer NBFCs and puts Tata Capital in a good position as credit demand rises in India.
Objectives of the Fresh Issue:
- Boost Tier-I capital to meet future capital adequacy requirements, including onward lending
- Cover a portion of offer-related expenses
Tata Capital IPO Purpose: To Increase the Tier I Capital Base
As of March 31, 2025, Tata Capital Limited’s Tier-I capital base is above the RBI’s regulatory limits. However, to maintain its growth and comply with capital adequacy rules, the company needs more capital.
The net proceeds from the Tata Capital IPO will be used to boost the Tier-I capital base. This will support lending, business growth, debt repayments, technology upgrades, and other general corporate needs. This infusion of capital should improve the company’s overall financial position and help meet its regulatory and operational requirements through FY26.
Tata Capital Limited: Company Profile
Tata Capital Limited, the main financial services branch of Tata Sons Private Limited, is preparing for its highly anticipated initial public offering (IPO). Supported by the Tata Group, one of India’s most reliable and diverse conglomerates, the company has a strong position in the NBFC sector.
According to the CRISIL Report, Tata Capital is the third-largest diversified NBFC in India with a gross loan book of ₹2.33 lakh crores as of June 30, 2025. The company has shown impressive growth, strong asset quality, and effective risk management. These factors make it an attractive option while assessing the Tata Capital IPO review.
Also read: Tata Capital IPO: Leading NBFC Fundraising Plans to Hit Soon
As of June 30, 2025, Tata Capital has successfully served 73 lakh customers across India. Its range of more than 25 lending products meets the needs of a variety of borrowers, including salaried individuals, self-employed professionals, entrepreneurs, small businesses, medium enterprises, and large corporations.
A key strength of Tata Capital’s lending strategy is its focus on retail and SME customers, who make up 87.5% of total gross loans. The loan book is highly diverse, with loan amounts ranging from ₹10,000 to over ₹100 crores. Notably, over 99% of loan accounts are below ₹1 crore, indicating the company’s broad-market reach and risk diversification.
In terms of asset security, 80% of total gross loans are secured. Furthermore, over 99% of the portfolio comes from the company’s internal lending practices, showing strong underwriting standards and consistent growth. This strong lending base will be a foundation for the capital raised through the Tata Capital IPO. It fits with the company’s goals outlined in the Tata Capital RHP and positions it well among Indian NBFC IPOs in 2025.
Tata Capital Limited: Nationwide Distribution with a Phygital Model
Tata Capital runs a strong omni-channel distribution network that combines physical and digital resources for a smooth customer experience.
As of June 30, 2025, the company had 1,516 branches in 27 states and union territories, reinforcing the extensive Tata Capital company profile. These branches employ dedicated in-house teams that handle everything from acquiring customers to processing loans and managing documentation.
Between FY23 and June 30, 2025, Tata Capital rapidly grew its branch network at a CAGR of 58.3%. This physical presence is supported by a strong digital system, featuring proprietary platforms like its website and mobile apps. Together, they create the foundation of its phygital strategy, which is a major strength in the Tata Capital business model.
In addition, Tata Capital has built strategic partnerships with direct selling agents (DSAs), original equipment manufacturers (OEMs), dealers, and digital partners, greatly enhancing its ability to acquire and serve customers.
Tata Capital Lending Verticals: Key Focus Areas Ahead of IPO
Tata Capital Limited has developed a diverse lending business model that serves a wide range of customers. As the Tata Capital IPO filed, understanding the main lending areas can help investors assess the company’s risk distribution and market position.
1. Retail Finance
Retail Finance vertical focuses on salaried individuals, self-employed professionals, and small business owners. It contributes over 61.3% of the total gross loan book and shows its strong presence in the mass retail lending segment.
Tata Capital offers a wide range of retail-focused loans, including:
- Home loans
- Personal loans
- Business loans
- Loans against property and securities
- Two-wheeler and car loans
- Commercial vehicle and construction equipment loans
- Microfinance and education loans
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2. SME Finance
SME Finance segment targets businesses that earn up to ₹250 crores each year. As of June 30, 2025, this segment made up 26.2% of total gross loans. This positions Tata Capital as a key player in India’s expanding SME lending market.
Tata Capital provides:
- Term loans
- Equipment finance and leasing
- Supply chain finance
- Cleantech and infrastructure finance
- Developer finance
3. Corporate Finance
The Corporate Finance vertical focuses on businesses with turnover exceeding ₹250 crores.
Offerings include:
- Long-term corporate loans
- Infrastructure and cleantech financing
- Real estate developer finance
Tata Capital’s Non-Lending Businesses: Diversified Growth Beyond Core Lending
While Tata Capital Limited is well known for its strong lending operations, the company has strategically moved into high-growth non-lending areas. This adds more depth to its portfolio before the upcoming Tata Capital IPO.
1. Distribution of Third-Party Financial Products
This segment strengthens Tata Capital’s customer engagement and creates additional fee-based income streams. Tata Capital distributes a range of third-party financial products, including:
- Insurance products (life, health, general)
- Credit cards from partner issuers
2. Wealth Management Services
Tata Capital offers wealth management solutions to both high-net-worth individuals (HNIs) and retail clients. This vertical aligns with the increasing demand for professional wealth services in India’s growing affluent segment. These services include:
- Investment advisory
- Portfolio management
3. Private Equity Business
Tata Capital’s private equity (PE) division is focused on two primary themes:
- Growth Fund: Investments in urbanization, manufacturing, and strategic services
- Healthcare Fund: Focused on pharmaceuticals, hospitals, diagnostics, CRAMS, and healthcare services
Tata Capital IPO: Strong Liability Profile and Credit Ratings
Ahead of the Tata Capital IPO, investors should note the company’s robust liability management and highest creditworthiness among Indian NBFCs.
AAA Credit Ratings Strengthen Financial Trust
Tata Capital Limited holds a AAA credit rating from all four major Indian agencies: CRISIL, ICRA, CARE, and India Ratings. This is the highest possible rating for any NBFC in India. It shows the company’s strong financial discipline and stability, which is important for risk-averse retail investors looking at Tata Capital IPO details.
Internationally, Tata Capital has a BBB- rating from both S&P Global and Fitch. This matches India’s sovereign rating and highlights its credibility in global markets.
Diversified and Prudent Borrowing Structure
Tata Capital maintains a well-diversified liability base through a strategic mix of instruments, contributing to the company’s solid position in the Tata Capital IPO valuation:
- Short and long-term bank loans
- Non-convertible debentures (NCDs)
- Subordinated and perpetual debt
- External commercial borrowings (ECBs)
- Commercial papers
As of June 30, 2025, Tata Capital reported:
- Average Cost of Borrowings of 7.8%
- Total Borrowings to Equity Ratio of 6.5x
Balanced Asset-Liability Management (ALM)
The company uses a careful ALM strategy. It maintains a stable mix of long-term and short-term assets and liabilities. This strategy reduces liquidity risks and supports steady growth in both lending and non-lending areas.
Tata Capital-TMFL Merger: Strategic Expansion Ahead of Tata Capital IPO
As investors look at the upcoming Tata Capital IPO, one major development is the merger with Tata Motors Finance Limited (TMFL). This move improves Tata Capital’s portfolio strength, geographic reach, and position in India’s rapidly growing vehicle finance market.
TMFL Merger Details: Approved and Effective
On May 1, 2025, the National Company Law Tribunal (NCLT) approved the Scheme of Arrangement between Tata Motors Finance Limited (TMFL) and Tata Capital Limited. The merger became effective on May 8, 2025. This consolidation reflects in a strengthened offering as investors wait for the Tata Capital IPO listing date.
As part of the merger:
- Tata Capital issued 18.38 crore equity shares to TMF Holdings Limited.
- The entire business of TMFL, including its assets, liabilities, and undertakings, was transferred to Tata Capital.
TMFL: A Strong Commercial Vehicle Financing Legacy
TMFL was a major player in India’s commercial and passenger vehicle loan space:
- 353 branches across 27 States and Union Territories
- Over 6,351 employees
- Financial solutions catered to dealers, fleet operators, transporters, and retail customers
- Sales footprint at over 450 Tata Motors dealerships
Strategic Rationale Behind the Merger
The merger with TMFL aligns with Tata Capital’s goal of becoming a full-stack vehicle finance provider and adds considerable depth to its capabilities:
- Commercial Vehicle Loans: TMFL contributed 92.5% of Gross Loans post-merger.
- Car Loans: 16.8% of Tata Capital’s Gross Loans post-merger came from TMFL.
- Supply Chain Finance: TMFL contributed 12.8% of the Gross Loans in this segment.
Key Benefits for Investors
- Enhanced distribution reach through TMFL’s extensive branch and dealer touchpoints
- Diversification across loan categories – commercial vehicles, passenger vehicles, and supply chain financing
- Operational synergies and improved cost efficiencies
- Stronger balance sheet and asset base to support future growth
Tata Capital IPO: Business Growth & Loan Portfolio Highlights
As Tata Capital is ready for its IPO launch, the company’s scale of operations and lending portfolio have seen significant growth. This is an important factor for Indian retail investors looking at the Tata Capital IPO review.
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Branch and Customer Base Growth
As of June 30, 2025, Tata Capital operated 1,516 branches across India, a significant increase from 1,289 in June 2024. This rapid expansion, along with a workforce growth from 28,079 to 28,813 employees, highlights the company’s focus on broadening its financial services. The number of customers also rose from 48 lakh to 73 lakh, showing strong market presence leading up to the Tata Capital IPO date.
Loan Disbursements and Portfolio Mix
Total disbursements in FY25 reached ₹1,42,302 crores, showing a 36% increase from the previous year. The total gross loans increased to ₹2,26,553 crores, reflecting a solid 41% year-on-year growth. This is one of the key metrics while analyzing the Tata Capital financials and revenue.
The diversified loan mix reduces risk concentration and enhances stability, which will be closely watched during the Tata Capital IPO book building process. Breaking down the loan book in FY25:
- Retail Finance: ₹1,41,114 crores (up 48% YoY)
- SME Finance: ₹59,463 crores (up 27% YoY)
- Corporate Finance: ₹25,976 crores (up 34% YoY)
Tata Capital IPO: Financial Performance
Here’s a snapshot of Tata Capital’s recent financial results as the IPO date approaches:
| Particulars (in ₹ Cr) | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Interest Income | 25,720 | 16,366 | 57% |
| Finance Cost | 15,030 | 9,568 | 57% |
| Net Interest Income | 10,690 | 6,798 | 57% |
| Fee Income | 2,346 | 1,273 | 84% |
| Investment Income | 305 | 559 | -45% |
| Total Income | 28,370 | 18,198 | 56% |
| NIM + Fee Income Margin | 13,036 | 8,071 | 62% |
| Net Total Income | 13,340 | 8,630 | 55% |
| Operating Expenses | 5,613 | 3,624 | 55% |
| Credit Cost | 2,827 | 592 | 377% |
| Profit After Tax | 3,665 | 3,150 | 16% |
| Basic EPS (in ₹) | 9.3 | 8.6 | 8% |
- Interest Income: The company reported ₹25,720 crores in FY25, a 57% increase from ₹16,366 crores in FY24. This indicates strong loan book growth, which is a positive sign for Tata Capital IPO valuation and investor confidence.
- Finance Cost: At ₹15,030 crores in FY25, up 57% from ₹9,568 crores last year, funding costs increased alongside lending growth. This shows that the expansion relies on debt, but margins are protected. This is an important point for the Tata Capital IPO review.
- Net Interest Income: NII rose to ₹10,690 crores from ₹6,798 crores, marking a 57% increase. This reflects sustained core profitability, which is a key metric for evaluating Tata Capital IPO pricing potential.
- Fee Income: ₹2,346 crores earned in FY25 represents an 84% increase. This shows solid growth in non-interest revenue streams, which is a positive diversification for Tata Capital Limited ahead of the IPO.
- Investment Income: This figure dropped 45% to ₹305 crores from ₹559 crores, mainly due to treasury or market factors. This is relevant for Tata Capital IPO SWOT analysis, but isn’t a structural concern for lending operations.
- Total Income: Increased by 56% to ₹28,370 crores, demonstrating the company’s ability to scale operations. This is a key figure in Tata Capital IPO coverage.
- NIM + Fee Income Margin: Improved by 62% to ₹13,036 crores, signaling stronger profitability from both interest and fee revenues. This is a double positive for IPO investors.
- Net Total Income: Went up 55% to ₹13,340 crores, showing consistent earnings even after adjusting for changes in investment income. This supports Tata Capital IPO review narratives.
- Operating Expenses: Grew by 55% to ₹5,613 crores, aligning with branch network expansion and operational scaling. This is expected for a growing NBFC before an IPO.
- Credit Cost: Jumped by 377% to ₹2,827 crores, indicating higher provisioning. Investors should consider this in their risk assessment for Tata Capital IPO.
- Profit After Tax: Increased by 16% to ₹3,665 crores, reflecting resilience despite higher credit costs. This strengthens the investment case for Tata Capital IPO.
- Basic EPS: Improved to ₹9.3 from ₹8.6, an 8% rise, which is critical for IPO pricing and anticipated listing gains.
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Tata Capital IPO: Key Financial Ratios Analysis
Understanding Tata Capital’s core financial ratios gives investors a clearer view of its operational efficiency, profitability, and risk profile.
Tata Capital Limited: Peer Comparison
A closer look at how Tata Capital Limited compares to top NBFC players gives insights into its strengths and position in the market.
| Company Name (FY25) | Revenue from Operations (₹ crores) | EPS (₹) Basic | P/B Ratio |
|---|---|---|---|
| Tata Capital Limited | 28,313 | 9.3 | 3.8 |
| Bajaj Finance Limited | 69,684 | 26.9 | 6.5 |
| Shriram Finance Limited | 41,834 | 50.8 | 2.0 |
| Cholamandalam Investment & Finance Company Limited | 25,846 | 50.7 | 5.7 |
| L&T Finance Limited | 15,924 | 10.6 | 2.4 |
| Sundaram Finance Limited | 8,486 | 170.5 | 3.9 |
| HDB Financial Services Limited | 16,300 | 27.4 | 3.9 |
- Revenue from Operations: Tata Capital’s revenue of ₹28,313 crores in FY25 is lower than Bajaj Finance’s ₹69,684 crores and Shriram Finance’s ₹41,834 crores, but higher than Sundaram Finance’s ₹8,486 crores.
- EPS (Basic): With an EPS of ₹9.3, Tata Capital falls behind peers like Sundaram Finance, which has an EPS of ₹170.5, and Shriram Finance at ₹50.8. This shows lower earnings per share. This is an important point for analysts and retail investors looking at the Tata Capital IPO price band.
- P/B Ratio: Tata Capital P/B ratio is 3.8 (in the unlisted market), which is the lowest among its peers. This indicates a cheaper valuation compared to Bajaj Finance and HDB Financial Services.
Tata Capital IPO: Strong Fundamentals and Market Leadership
As the Tata Capital IPO prepares for launch, investors are closely monitoring its performance metrics and market position. Tata Capital is the third-largest diversified NBFC in India with a gross loan book of ₹2,26,553 crores as of March 2025. Between March 2023 and March 2025, it recorded a 37.3% growth in gross loans, making it one of the fastest-growing NBFCs in the country.
Comprehensive Offerings and Branch Expansion
Tata Capital offers the most loan products among large diversified NBFCs. Its branch network grew at an impressive 66.6% CAGR from FY23 to FY25, attaining the fastest growth rate among peers, and reaching 1,496 branches nationwide.
Operational Efficiency and Risk Management
With a credit cost of 1.4%, Tata Capital ranks third-lowest among its peers, while keeping an operating expense ratio of 2.7%. It also has the second-lowest Net Stage 3 loan ratio at 0.8% and a solid provision coverage ratio of 58.5%, indicating strong asset quality.
Strong Funding Base
As of March 2025, Tata Capital had outstanding debt securities worth ₹80,142 crores, the second-largest among major NBFCs. The company’s borrowing program is supported by a AAA credit rating from CRISIL, ICRA, and India Ratings, which is the highest possible domestic rating.
Tata Capital IPO SWOT analysis
Tata Capital IPO marks an important step that brings together the strong history and varied financial services of the Tata Group with high-growth chances. The company distinguishes itself in the NBFC sector through solid asset quality, digital innovation, and a fast-growing presence across India. However, like all financial institutions, it faces competition, regulatory issues, and economic challenges.
Here is the detailed SWOT analysis of Tata Capital Limited:
Tata Capital Limited: Strengths
1. Strong Tata Group Legacy & Brand Power
Tata Capital is the financial services arm of the Tata Group, which is one of India’s most reliable and varied business groups with a legacy spanning over 150 years. Tata Sons, the main promoter, owns an 88.6% stake and has invested ₹8,970 crores in equity since 2007.
2. Market Leadership in Diversified NBFC Space
Ranked as the third-largest diversified NBFC in India, Tata Capital has a gross loan book of ₹2,33,399 crores as of June 2025. It provides the largest range of lending products among major NBFCs, offering over 25 options. The portfolio is spread across various products, customers, and regions, which helps reduce concentration risk.
3. Omni-Channel Distribution Network
A “phygital” presence that combines a nationwide branch network, a broad partner ecosystem, and solid digital platforms allows Tata Capital to improve customer reach, service, and acquisition strategies.
4. Strong Risk Management & Asset Quality
Tata Capital maintains one of the lowest GNPA ratios (1.9%) and NNPA ratios (0.8%) among its peers, with a provision coverage ratio of 58.5%. An agile, analytics-driven risk framework addresses credit, operational, market, and information security risks. This approach ensures stability during different economic cycles.
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5. Digital-First Strategy
Technology and analytics are integrated throughout the customer lifecycle, from onboarding to collections. This integration improves efficiency, reduces costs, enables cross-selling, and improves the customer experience.
6. Highest Credit Ratings
Holds AAA (stable) ratings from CRISIL, ICRA, CARE, and India Ratings, the highest possible for NBFCs in India. It also has international ratings of BBB- from S&P and Fitch, which matches India’s sovereign rating.
7. Consistent Profitability
Profitable since it started in 2007, with strong performance during various market cycles.
Tata Capital Limited: Weaknesses
1. High Level of Stage 3 Loans
Gross Stage 3 Loans stood at 1.9% of Total Gross Loans as of March 31, 2025, compared to 1.5% in FY24. An increase in non-performing assets due to customer defaults could impact Tata Capital’s financial performance and cash flows.
2. Significant Share of Unsecured Loans
Unsecured Gross Loans accounted for 21% of Total Gross Loans in FY25, down from 24.5% in FY24. A failure to recover these receivables on time may harm profitability.
3. Loan Mix Changes Could Impact Asset Quality
Changes in the loan portfolio composition may affect financial metrics, asset quality, and overall performance.
4. High Exposure to Secured Loans and Collateral Risks
Tata Capital’s Secured Gross Loans made up 79% of Total Gross Loans in FY25, compared to 75.5% in FY24. The company can face potential losses if it cannot recover collateral value during enforcement.
5. Concentration in Retail Finance
Retail Finance formed 62.3% of Total Gross Loans in FY25, up from 58.9% in FY24. A slowdown in retail demand or an increase in defaults could negatively affect growth and margins.
6. Real Estate Sector Dependency
Home Loans, Loans Against Property, and Developer Finance together contributed 33.8% of Total Gross Loans in FY25, down from 37.4% in FY24. Any decline in the real estate sector could lead to reduced repayments and increased credit risk.
7. Interest Rate Mismatch
Fixed interest rate loans accounted for 38.6% of Total Gross Loans, while fixed interest rate borrowings made up 54.0% of Total Borrowings in FY25. Changes in interest rates could pressure margins and reduce net interest income.
8. Regulatory Risks on Securities Issuances
Past down-selling of certain NCDs and CRPS issuances has led to holder counts exceeding prescribed limits. This situation exposes Tata Capital to potential regulatory or penal action.
Tata Capital Limited: Opportunities
1. Expanding Product Portfolio & Distribution Reach
With over 25 lending products and a nationwide network of 1,516 branches, Tata Capital is in a strong position to reach new market segments. Recent launches, including microfinance loans, secured business and education loans, and new car loans, show its ability to recognize and pursue new opportunities.
2. Leveraging Technology & Data Analytics
By embedding AI, ML, and Generative AI throughout its lending value chain, from origination to repayment, Tata Capital is improving operational efficiency, lowering costs, and enhancing customer experience. Data-driven insights will help with cross-selling, personalization, and risk reduction. Strong cybersecurity measures will protect customer trust.
3. Optimizing Borrowing Costs with a Diversified Funding Base
A focus on long-term instruments like NCDs and ECBs, along with a varied liability mix, helps Tata Capital secure competitive funding. Keeping strong credit ratings and careful asset-liability management will support ongoing growth and better net interest margins.
Tata Capital Limited: Threats
1. Interest Rate Volatility
Fluctuations in interest rates can directly affect Tata Capital Limited’s lending and treasury operations. This leads to changes in earnings and important financial metrics.
2. Macroeconomic Slowdown
Any decline in India’s economic situation could hurt loan demand, repayment ability, and overall profitability.
3. Credit Information Infrastructure Risks
Limitations in India’s credit information systems may raise the risk of loan defaults.
4. Sovereign Rating Downgrade Risk
A downgrade in India’s sovereign credit rating could negatively affect investor sentiment and the Tata Capital share price.
How to apply for Tata Capital IPO online via SMC Global?
- Log in to the SMC ACE App or the SMC Global Securities website with your registered credentials or simply open free Demat Account.
- Go to the “IPO” page and find the IPO in the list of upcoming issues.
- Enter bid details by choosing the lot size, price, or selecting the cut-off option and the quantity.
- Confirm and submit the application using UPI or ASBA for payment authorization.
- Approve the UPI mandate in your UPI app or bank portal to successfully complete your IPO application.
- For the latest updates and expert insights on IPOs, stocks, and commodities, you can also join the SMC Telegram channels.
Conclusion
With its strong market position and diverse loan portfolio, rapid growth, and trust linked to the Tata brand, the Tata Capital IPO is one of the most anticipated offerings in recent years. As one of the most notable Indian NBFC IPOs in 2025, the upcoming issue can attract significant interest from both retail and institutional investors.
While its solid financial results, nationwide branch expansion, and digital efforts show great growth potential, investors should also carefully consider risks in the NBFC sector, interest rate changes, and Tata Capital IPO valuation before applying. A detailed study of the Tata Capital IPO subscription status will also help in making better investment decisions.
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Frequently Asked Questions – FAQs
1. When is Tata Capital launching its IPO?
Tata Capital IPO is opening on October 6, 2025 (Monday), and bidding will take place till October 8, 2025 (Wednesday).
2. What is the Tata Capital IPO lot size for retail investors?
Tata Capital IPO lot size is 46 shares, and its price band is set between ₹310 and ₹326 per share. The retail investors can invest with a minimum amount of ₹14,996 and a maximum amount of ₹1,94,948.
3. What is the Tata Capital IPO expected listing gain?
Tata Capital IPO GMP is ₹27, and it is expected to list at an 8.28% gain at a price of ₹353. However, it is not a reliable indicator to invest in any IPO.
4. Is Tata Capital IPO listing on NSE or BSE?
Yes, Tata Capital is a mainboard IPO and it will list on both the exchanges, NSE and BSE on October 13, 2025.
5. Is Tata Capital IPO a good investment?
Tata Capital has the support of the reliable Tata brand and demonstrates strong growth in financials. However, it’s important to consider macroeconomic risks, interest-rate risks, valuation details, and credit quality as mentioned in the final RHP before making investment decisions.
6. Can I buy Tata Capital shares before IPO?
Tata Capital shares are currently unlisted and cannot be bought on the exchanges before the IPO. Trading before the IPO in grey markets is unofficial and involves significant risk.
7. How to check Tata Capital IPO allotment status?
After the IPO closes and shares are allocated, you can check the status on the SMC ACE App by logging into your Demat account.
8. Who owns Tata Capital?
Tata Capital is mainly owned by Tata Sons Private Limited. Other Tata group companies and IFC hold smaller shares.
9. What does Tata Capital do?
It operates as a varied non-banking financial company under the Tata Group. It provides consumer, small, and medium enterprises, corporate lending, wealth management, and financial product distribution services.
10. Is Tata Capital profitable?
Yes, Tata Capital has been profitable since it started lending operations in 2007. In the first quarter of FY25, its profit reached ₹990 crores, showing strong 114% growth on a year-on-year basis.
11. Why is Tata Capital going public?
Listing is required by the RBI for upper-layer NBFCs to go public by September 2025. This will help strengthen their capital base for future lending growth.
12. What are the strengths and weaknesses of Tata Capital?
Tata Capital Limited has a solid brand reputation, a well-diversified loan portfolio, an AAA credit rating, and steady growth. However, it faces risks from interest rate changes, real estate market cycles, and challenges with integration after the TMFL merger.
13. What is the future growth potential of Tata Capital?
Tata Capital is looking to grow by expanding its product offerings, strengthening distribution, and leveraging technology to enhance efficiency and improve customer experience. It also focuses on maintaining high asset quality, optimizing costs, and using strategic partnerships like the TMFL merger to drive long-term growth.
References:
https://investmentbank.kotak.com/downloads/tatacapital-RHP.pdf
https://www.investorgain.com/gmp/tata-capital-ipo-gmp/1491/
https://unlistedzone.com/shares/tata-capital-limited-unlisted-share/
Author: All Content is verified by SMC Global Securities.
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