Tata Capital, a leading non-banking financial company (NBFC), is gearing up for a blockbuster $2 billion (Rs 17,200 crore) initial public offering (IPO), slated to hit the market in the week starting September 22, 2025, according to insider sources. Set to debut by September 30, this IPO could catapult the company to an impressive $11 billion valuation, marking it as the largest public offering in India’s financial sector and the Tata Group’s second major listing after Tata Technologies’ debut in November 2023.

The IPO will feature a mix of 47.58 crore shares, including a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares. Tata Sons, holding an 88.6% stake, plans to offload 23 crore shares, while the International Finance Corporation (IFC), with a 1.8% stake, will divest 3.58 crore shares. The proceeds will bolster Tata Capital’s Tier-1 capital, fueling future lending and growth initiatives, aligning with the Reserve Bank of India’s (RBI) mandate for upper-layer NBFCs to list within three years of classification—a deadline Tata Capital faces by September 2025, following its designation in September 2022.

Tata Capital’s financial strength underpins this ambitious move, with gross loans reaching Rs 2.26 lakh crore by March 2025, boasting a 37% compound annual growth rate (CAGR) from FY23 to FY25. Profit after tax soared to Rs 3,646.6 crore in FY25, up 10% CAGR from Rs 3,029.2 crore in FY23, while Q1 FY26 net profit doubled to Rs 1,041 crore from Rs 472 crore last year, with total income jumping to Rs 7,692 crore. Despite rapid expansion, asset quality remains robust, with gross bad loans at 1.9% and net bad loans at 0.8% as of FY25, supported by a 58.5% provision coverage ratio and a healthy 5.2% net interest margin.

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Since starting operations in 2007, Tata Capital has served over 7 million customers, diversifying into insurance, credit cards, wealth management, and private equity fund sponsorship. Market experts are optimistic, citing its high ratings, stable leadership, and growing loan book as indicators of sustained success. Following the strong debuts of HDB Financial Services (Rs 12,500 crore IPO in June 2025) and Bajaj Housing Finance (135% premium in September 2024), Tata Capital’s IPO is poised to attract significant investor interest, potentially reshaping India’s financial landscape.

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