Tata Capital IPO: Listing Date, Valuation And Ownership — All You Need To Know

The board of the financial services arm of Tata Group, Tata Capital Ltd., has approved the initial public offering of the firm, with a listing slated by September end in 2025.

The board also approved a Rs 1,504-crore rights issue to its existing shareholders.

The Tata Capital IPO will comprise a fresh issue of 23 crore shares and offer for sale from eligible shareholders and investors of the company.

The company did not disclose the listing timeline but is required to meet the Sept. 30, 2025 deadline for the IPO.

The offering is likely to be worth over $1 billion in value and will be the third company to list in the last two decades from Tata group, after Tata Consultancy Services Ltd. and Tata Technologies Ltd.

The Tata Sons subsidiary will start its filing process once the ongoing merger with Tata Motor Finance is completed. The merger process is in advanced stage in the National Company Law Tribunal, Mumbai.

The unsecured creditors of Tata Capital met on Jan. 17, 2025 and approved the merger between the two non-banking finance companies.

Tata Capital is the holding company for the financial services businesses and is registered with the Reserve Bank of India as a systemically important, non-deposit-taking, Core Investment Company.

In September 2022, the banking regulator classified Tata Capital as an upper-layer systemically important NBFC. This classification requires the company to comply with stricter regulatory norms, including mandatory listing within three years, that is, September 2025.

On a consolidated basis, Tata Capital reported a profit after tax of Rs 3,327 crore on a total asset base of Rs 1,76,694 crore in FY24, compared with a profit after tax of Rs 2,946 crore on a total asset base of Rs 1,35,626 crore in FY23. For the first half of FY25, profit after tax for Tata Capital stood at Rs 1,892.52 crore on a total asset base of Rs 1,92,232 crore.

The proforma assets under management of the entity stood at Rs 2.30 lakh crore as on March 31, 2024, making it the 12th largest NBFC in the country. The proforma total assets at the merged entity is at Rs 2.27 lakh crore.

In October this year, the Reserve Bank of India approved the merger of the company with Tata Motors Finance, paving way for the eventual single NBFC listing from the Tata Group. Tata Sons will own 88.49% in the merged NBFC, along with Tata Group companies—including Tata Motors— owning a total of 7.72% stake. Of this, Tata Motors alone will hold 4.7% stake in the merged Tata Capital.

Tata Capital will have an equity capital of Rs 3,930.2 crore, comprising of 393.02 crore shares of Rs 10 face value post-merger with Tata Finance. At the time of merger of Tata Capital and Tata Motors, Tata Capital shares were valued at Rs 248.6 apiece. That puts the value of Tata Capital at close to Rs 98,000 crore on a post-merger basis. The proforma book value of the merged NBFC stood at Rs 31,603 crore at the end of September 2024, thereby valuing the company at three times book value.