Tata Capital IPO
Tata Capital IPO Price Range is ₹310 - ₹326, with a minimum investment of ₹14,996 for 46 shares per lot.
Subscription Rate
1.95x
as on 08 Oct 2025, 06:12PM IST
Minimum Investment
₹14,996
/ 46 shares
IPO Status
Price Band
₹310 - ₹326
Bidding Dates
Oct 6, 2025 - Oct 8, 2025
Issue Size
₹15,511.87 Cr
Lot Size
46 shares
Min Investment
₹14,996
Listing Exchange
BSE
IPO Doc
Tata Capital IPO Application Timeline
IPO Subscription Status
as on 08 Oct 2025, 06:12PM IST
IPO subscribed over
🚀 1.95x
This IPO has been subscribed by 1.1x in the retail category and 3.42x in the QIB category.
Subscription Rate
| Total Subscription | 1.95x |
| Retail Individual Investors | 1.1x |
| Qualified Institutional Buyers | 3.42x |
| Non Institutional Investors | 1.98x |
Tata Capital IPO: The Full Story
Tata Capital is hitting the market with a big IPO. But what’s really behind the numbers? This video walks you through its business model, financial performance, strengths, and challenges - so you can understand the company better before taking any step.
Objectives of IPO
- The total size of the IPO involves offering up to 47,58,24,280 equity shares, aggregating up to ₹15,511.87 crore. This overall offer is divided into two parts: a Fresh Issue of up to ₹6,846 crore, and an Offer for Sale (OFS) of up to ₹8,665.87 crore. The proceeds generated from the Fresh Issue will be received by the company. In contrast, the proceeds from the OFS will entirely go to the selling shareholders, who include Tata Sons Private Limited (the Promoter Selling Shareholder) and International Finance Corporation (the Investor Selling Shareholder).
- It plans to use 100% of the fresh issue for augmenting its Tier–I capital base to meet future capital requirements, specifically including onward lending. As a Non-Banking Financial Company (NBFC), the company is required to comply with RBI regulations on capital adequacy, which mandate a minimum Capital to Risk Assets Ratio (CRAR) of 15%, including a Tier I Capital component of 10.0%. As of June 30, 2025, its CRAR on a standalone basis was 16.6% (Tier I CRAR was 12.8%). This capital boost is vital to maintain regulatory compliance while supporting the anticipated growth of its large lending book, which stood at ₹2,33,398.55 crore in Total Gross Loans as of June 30, 2025.
- A portion of the proceeds from the Fresh Issue will be used to meet the various expenses related to the Offer. Additionally, the company expects to gain non-monetary benefits from the listing of its equity shares on the Stock Exchanges, such as enhancing its brand name and creating a public market for its shares in India.
Financial Performance of Tata Capital
The company has shown rapid balance sheet expansion from FY23 to FY25, primarily driven by inorganic growth, including the acquisition of TMFL. Revenue surged at a 44.2% CAGR, rising from ₹13,637 crore in FY23 to ₹28,370 crore in FY25. Total Assets grew at a 35.4% CAGR, reaching ₹2,48,465 crore by March 2025, reflecting the scale added through acquisitions.
Despite this rapid growth, Net Interest Margin (NIM) remained stable around 5.1-5.2%, indicating consistent lending efficiency. Borrowings increased sharply at a 35.6% CAGR, reaching ₹2,08,415 crore in FY25, supporting the company’s expansion but also raising leverage.
Profitability has seen a notable improvement recently. While PAT grew modestly from ₹2,946 crore in FY23 to ₹3,655 crore in FY25, Q1 FY26 witnessed an exceptional jump of 120.4% YoY, from ₹472 crore in Q1 FY25 to ₹1,041 crore. This growth came despite a slight dip in NIM and reduced operating expenses, suggesting better operational efficiency and effective integration of the newly acquired business.
Overall, the company combines aggressive growth, stable interest margins, and improved profitability, but its rising borrowings highlight a need for careful debt management as it continues to expand.
Strengths and Risks
Strengths
It holds the highest possible credit rating for NBFCs in India, rated "AAA with stable outlook" by CRISIL, ICRA, CARE, and India Ratings. This stability supports funding access and contributes to an Average Cost of Borrowings Ratio of 7.8% (June 30, 2025).
It is positioned as the third largest diversified NBFC in India based on Total Gross Loans of about ₹2,33,400 crore as of June 30, 2025. It utilizes an omni-channel model supported by a large physical presence of 1,516 branches across India as of June 30, 2025. This widespread network enables localized customer acquisition and service delivery for its comprehensive suite of 25+ lending products.
It maintains stable asset quality, reporting a Gross Stage 3 Loans Ratio (stressed assets) of 2.1% and a Net Stage 3 Loans Ratio of 1% as of June 30, 2025. These metrics are cited as among the best across large diversified NBFCs.
The company has demonstrated recent accelerating profit growth, with its Profit After Tax increasing by 114.4% year-over-year for the three months ended June 30, 2025. While it has grown at an annual rate of 11.4% between FY23 and FY25.
It is the flagship financial services company of the Tata Group, a globally recognized business. The Tata Group brand was recognized as the most valuable brand in India in the 2025 Brand Finance report.
Operational efficiency is high, particularly in retail lending, where over 96% of its Retail Finance disbursements during the three months ended June 30, 2025, were processed using automated systems.
Risks
It relies heavily on borrowings, with total borrowings reaching ₹2,11,851.6 crore as of June 30, 2025. This results in a high total borrowings to total equity ratio of 6.5 times, exposing it to funding risks.
It must strictly comply with RBI capital adequacy norms, requiring a minimum CRAR of 15% and Tier I Capital of 10%. Changes in regulations or inability to maintain required ratios could restrict growth and profitability.
Despite strong asset quality, lending involves inherent credit risk, leading to significant impairment costs. In the three months ended June 30, 2025, Credit Cost (impairment on financial instruments) amounted to ₹908.58 crore, which directly reduces profitability.
While the loan book is growing, the credit cost, which is the cost of bad loans, went up from 2.1% in June 2024 to 2.4% in June 2025. This means more loans are turning bad, which is not a good sign if it keeps rising.
The provision coverage ratio, which shows how much buffer is kept for bad loans, dropped from 62% to 53% YoY. This means Tata Capital is setting aside a smaller cushion for possible loan losses, which could be risky if more loans go bad.
The business is highly dependent on internal processes and IT systems. Security failures or cyberattacks carry the risk of data leakage (including sensitive personal data) and intellectual property loss, potentially damaging its reputation.
The RBI's past inspections of TMFL (now merged with the company) for Fiscals 2024, 2023, and 2022 observed shortcomings. These issues included deficiencies in the root cause analysis of customer complaints and instances of violating KYC/AML guidelines, such as multiple UCIC codes linked to a single PAN. Such unresolved non-compliances could expose it to future regulatory penalties.
How to Apply for Tata Capital IPO on INDmoney
- Download the INDmoney app and complete your KYC.
- Go to INDstocks → IPO, or just search “IPO”.
- Tap on Tata Capital IPO from the list of live IPOs.
- View key details like price band, lot size, and dates.
- Tap Apply Now and choose your number of lots.
- Use INDpay UPI for instant mandate tracking.
- Your funds will be blocked until the share allotment is finalized.
Listed Competitors of Tata Capital
Company | Operating Revenue | NIM (Net Interest Margin) | P/E Ratio | P/B Ratio | Return on Equity | CRAR | Gross Stage 3 Loans Ratio | Cost to Income Ratio | Borrowings to Equity | Loan Book Q1 FY26 |
Tata Capital | ₹28,313 Cr | 5.2% | 37.9x | 4.1x | 12.6% | 16.9% | 1.9% | 42.1% | 6.6x | ₹233,399 Cr |
₹69,684 Cr | 9.9% | 37.8x | 6.5x | 19.2% | 21.9% | 1.0% | 33.2% | 3.7x | ₹441,450 Cr | |
₹41,834 Cr | 9.6% | 12.1x | 2x | 18.6% | 20.7% | 4.6% | 30.5% | 4.2x | ₹272,249 Cr | |
₹25,846 Cr | 6.9% | 31.5x | 5.7x | 19.7% | 19.8% | 4.0% | 39.7% | 7.4x | ₹192,148 Cr | |
₹15,924 Cr | 9.9% | 23.1x | 2.4x | 10.8% | 22.3% | 3.3% | 40.1% | 3.6x | ₹102,314 Cr | |
₹8,486 Cr | 4.9% | 26.9x | 3.9x | 15.5% | 20.4% | 1.4% | 37.8% | 4.6x | ₹71,306 Cr | |
₹16,300 Cr | 7.8% | 28.1x | 3.9x | 14.7% | 19.2% | 2.3% | 49.1% | 5.5x | ₹109,342 Cr |
Tata Capital Shareholding Pattern
| Promoters & Promoter Group | 95.6% | |
| Name | Role | Stakeholding |
| Tata Sons Private Limited | Promoter | 88.6% |
| TMF Holdings Limited | Promoter Group | 4.6% |
| Tata Investment Corporation Limited | Promoter Group | 2.1% |
| International Finance Corporation | Public | 1.8% |
About Tata Capital
It caters to a diverse customer base, including salaried and self-employed individuals, entrepreneurs, small businesses, small and medium enterprises (SMEs), and corporates. The business is heavily focused on Retail and SME customers, who collectively accounted for 87.5% of its Total Gross Loans as of June 30, 2025. Since commencing operations in 2007, it has served 73 lakh (7.3 million) customers. Its operational scale is supported by an omni-channel distribution model across rural and urban areas, utilizing an extensive pan-India network of 1,516 branches as of June 30, 2025. The Total Gross Loans stood at ₹2,33,398.55 crore as of June 30, 2025, with 80.0% of these loans being secured. Furthermore, the loan portfolio is highly granular, as over 98% of its loan accounts have a ticket size smaller than ₹1 crore.
The company’s credit profile is robust, evidenced by a AAA credit rating from agencies including CRISIL and ICRA, which is the highest possible rating for an NBFC in India. It demonstrates superior asset quality, featuring a Gross Stage 3 Loans Ratio (indicating stressed assets) of 2.1% as of June 30, 2025, which is cited as among the best across large diversified NBFCs. Looking ahead, the stated future strategy is to continue its growth trajectory by enhancing its product offerings and strengthening its distribution network.
For more details, visit here: www.tatacapital.com
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Frequently Asked Questions of Tata Capital IPO
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Who are the promoters of Tata Capital?
The company's promoter is Tata Sons Private Limited. It holds 357.51 crore (3,575,064,262) Equity Shares, representing 88.6% of the pre-IPO equity capital. Tata Sons Private Limited is the holding company for the wider Tata Group.
Who are the competitors of Tata Capital?
It competes across the financial sector with banks, housing finance companies, and NBFCs. Key listed competitors cited in the industry report include Bajaj Finance, Shriram Finance, HDB Financial, and L&T Finance.
How does Tata Capital make money?
It primarily earns income through its Lending Business, offering over 25 loan products to salaried individuals, SMEs, and corporates. It also generates non-lending revenue from wealth management and distributing third-party products like insurance and credit cards.