A month after Tata Capital got SEBI’s approval for its upcoming IPO, the non-banking finance company (NBFC) is reportedly in the process of filing its updated draft red herring prospectus.
Yesterday, shares of Tata Investment Corp, which holds around 2% stake in Tata Capital, rallied 5% reacting to the news.
Tata Investment Corp Shares Rise Amid Tata Capital Buzz
According to reports, the initial public offering (IPO) of Tata Capital will see Tata Sons selling up to 23 crore shares, while International Finance Corp. will be looking to offload another 3.58 crore shares. IFC currently holds 7.16 crore shares worth a 1.8% stake in the firm.
Tata Capital will also issue up to 21 crore shares via a primary raise.
As of March 2025, Tata Sons owns 88.6% stake in Tata Capital, while other Tata group companies own another 7%.
| Detail | Information |
| Offer for Sale (OFS) | Tata Sons: 23 Cr shares, IFC: 3.58 Cr shares |
| IFC Stake | 7.16 Cr shares (1.8% stake in Tata Capital) |
| Fresh Issue | Up to 21 Cr shares |
| Promoter Holding | Tata Sons: 88.6%, Other Tata group entities: 7% |
| Pre-IPO Placement | None planned |
Among the Tata companies, Tata Investment Corporation holds a 2.2% stake, while Tata Chemicals, Tata Motors, and Tata Power Company each own about 0.1%. Tata Consumer also holds some shares.
Tata Group Companies Holding in Tata Capital
| Company | Holding (%) |
| Tata Investment | 2.15% |
| Tata Consumer | 0.02% |
| Tata Chemicals | 0.09% |
| Tata Motors | 0.12% |
| Tata Power | 0.06% |
Source: Company Reports, CNBC
About Tata Capital
Tata Capital — a 100% Tata Sons-owned NBFC — plays a pivotal role in India’s lending ecosystem, spanning retail, corporate, infrastructure, and wealth management segments.
Its retail lending portfolio includes home, vehicle, personal, and consumer loans — all witnessing steady growth amid India’s robust credit demand.
On the corporate front, it focuses on lending to financially strong, well-rated businesses. Meanwhile, its infrastructure finance division is actively financing large-scale, government-driven capex projects.
Though still a smaller piece, Tata Capital’s wealth management arm is gaining traction, fueled by the rising prosperity of India’s urban households.
In FY24, the company posted its highest-ever annual profit — backed by a strong balance sheet and expanding business footprint.
Rights Issue Ahead of IPO
In June 2025, Tata Capital’s board had approved fundraising via a rights issue to raise up to Rs 1,752 crore, and up to Rs 30,000 crore via bonds. Before that, the company raised Rs 1,500 crore via a rights issue in February 2025.
Tata Capital is coming out with its IPO to meet regulatory norms where big NBFCs have to list before September 2025.
Once the listing goes through, Tata Capital will become the 17th Tata Group company to be publicly traded.
Conclusion
Tata Capital’s IPO is a landmark moment for the Tata Group — its second big listing in recent years after the strong debut of Tata Technologies in November 2023.
If all goes well, Tata Capital’s IPO could be one of the biggest in India’s financial sector, cementing its stature as a key player in the NBFC space.
To fuel growth, the company has rapidly scaled its physical presence — expanding its branch network from 723 in FY24 to 1,000 in FY25 — with a sharp focus on tapping underserved markets and pushing two-wheeler loan growth.
For investors, this IPO opens the door to a fast-growing, well-diversified financial powerhouse — with the Tata brand’s trust built in.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Yash Vora is a financial writer with the Informed InvestoRR team at Equentis. He has followed the stock markets right from his early college days. So, Yash has a keen eye for the big market movers. His clear and crisp writeups offer sharp insights on market moving stocks, fund flows, economic data and IPOs. When not looking at stocks, Yash loves a game of table tennis or chess.
