Tata Capital, the financial services arm of the Tata Group, has taken the first official step toward going public. On Monday, August 4, 2025, the non-banking financial company (NBFC) filed its draft red herring prospectus (DRHP) with market watchdog SEBI for its much-anticipated Initial Public Offering (IPO).
What’s in the Offer?
The IPO will consist of a fresh issue of up to 21 crore equity shares with a face value of ₹10 each. Additionally, the offer includes an Offer for Sale (OFS) of up to 26.58 crore shares by existing shareholders.
Tata Sons, the parent and promoter of Tata Capital, plans to offload up to 23 crore shares through the OFS route. International Finance Corporation (IFC), another shareholder, is also looking to sell up to 3 crore shares in the IPO.
Why the IPO Now?
This move isn’t just about raising funds—it’s also in response to a regulatory requirement. Back in September 2022, Tata Capital was classified as an upper-layer NBFC by the Reserve Bank of India (RBI). According to RBI norms, NBFCs in this category must list themselves on the stock exchanges within three years. With the clock ticking, Tata Capital is now pushing forward with its listing plan.
Interestingly, the company had already filed confidential papers in April this year. With the green signal from SEBI last month, it’s all systems go for one of the most high-profile IPOs of 2025.
Steep Discount on the Cards?
If reports are to be believed, Tata Capital’s IPO is expected to raise around ₹18,000-₹19,000 crore. What’s catching investor attention, though, is the potential deep discount on offer.
Market chatter suggests the IPO price could be set around ₹375-₹400 per share. That’s nearly 50% lower than its current unlisted market price of ₹775-₹800 per share. Dealers active in the pre-IPO market are echoing the same view, making this one of the more buzzworthy public issues in recent times.
