Tata Capital's Record-Breaking IPO: A Game Changer in India's Financial Sector

Tata Capital reported a significant profit increase for the June 2025 quarter, leading to an updated IPO plan valued at $2 billion. This will be India's largest financial sector public issue, with Tata Sons and IFC reducing their stakes. RBI mandates drive the listing.

Tata Capital, a non-banking financial institution, announced a substantial increase in its consolidated net profit, reaching Rs 1,040.93 crore for the quarter ending June 2025.

This represents more than double the Rs 472.21 crore profit from the same period last year, according to the company's latest regulatory filing.

The company's total income also saw an upswing, rising to Rs 7,691.65 crore from Rs 6,557.40 crore in the April-June quarter of FY2025. The improved financial performance precedes Tata Capital's impending initial public offering (IPO), anticipated to raise USD 2 billion, valuing the company at around USD 11 billion.

The IPO, which aligns with the Reserve Bank of India's mandate for upper-layer non-banking financial companies (NBFCs), will mark a significant moment in India's financial sector, potentially becoming its largest public issue to date.

The offering consists of 47.58 crore shares, combining a fresh issuance of 21 crore shares and an offer for sale (OFS) comprising 26.58 crore shares.

In the OFS component, Tata Sons plans to offload 23 crore shares, while the International Finance Corporation will divest 3.58 crore shares. Tata Group's strategic move follows the recent public listing of Tata Technologies and satisfies regulatory requirements set forth last year when Tata Capital was categorized as an upper-layer NBFC.

(With inputs from agencies.)