Tata Capital, the financial services arm of the iconic Tata Group, is gearing up to launch one of the most significant initial public offerings (IPOs) in India in 2025. With a targeted issue size .pdf

A deep dive into Tata Capital’s historic $2 billion IPO — uncover its objectives, market implications, and how it shapes the future of Indian finance.

3. Tata Capital, the financial services arm of the iconic Tata Group, is
gearing up to launch one of the most significant initial public
offerings (IPOs) in India in 2025. With a targeted issue size of $2
billion (approximately ₹17,000 crore), this IPO marks a pivotal
milestone both for Tata Capital and the broader non-banking
financial company (NBFC) sector. It not only represents a
regulatory milestone but also reflects Tata Capital’s impressive
growth trajectory and strategic positioning in areas such as clean
technology finance. TATA CAPITAL

4. The International Finance Corporation (IFC), part of the World
Bank Group, partnered with Tata Capital in 2011 to establish Tata
Cleantech Capital Ltd (TCCL). This initiative was designed to
foster financing for renewable energy and sustainable
infrastructure projects at a time when India’s clean technology
sector faced considerable challenges related to subsidies and
investment risk. Background: From Tata Cleantech
Capital to Tata Capital

5. Over the past decade, TCCL
matured into one of India’s leading
green financiers, supporting over
500 renewable projects spanning
solar, wind, biomass, small hydro,
water treatment, and electric
By fiscal year 2025, Tata Cleantech’s loan book crossed ₹18,000
crore, reflecting a compound annual growth rate (CAGR) near 32%
over the prior two years, making a significant contribution to Tata
Capital’s business and growth profile.

6. In a strategic consolidation, TCCL merged with Tata Capital,
integrating cleantech finance with Tata Capital’s broader NBFC
operations. This merger has created a powerful financial
institution with diversified lending capabilities and a robust green
finance portfolio.

7. The International Finance Corporation (IFC), part of the World
Bank Group, partnered with Tata Capital in 2011 to establish Tata
Cleantech Capital Ltd (TCCL). This initiative was designed to
foster financing for renewable energy and sustainable
infrastructure projects at a time when India’s clean technology
sector faced considerable challenges related to subsidies and
investment risk. Tata Capital’s Financial Performance
and Market Position

8. Its diversified lending portfolio
includes consumer loans, commercial
finance, private equity, loans against
property, and wealth management
services, along with a deep focus on
sustaining and expanding its cleantech
finance vertical.
Tata Capital’s total assets grew robustly, from ₹1.35 lakh crore in
2023 to ₹1.76 lakh crore in 2024, exemplifying strong balance
sheet growth and capital adequacy.

9. A noteworthy highlight in the IPO narrative is the lucrative early
investment by IFC in Tata Capital. IFC initially entered at an
adjusted equity price of about ₹25 per share back in 2011,
investing approximately ₹179 crore. Following the merger and
subsequent equity actions including a rights issue priced at ₹343
per share in July 2025, IFC’s 7.16 crore-share holding is now
valued at nearly ₹2,458 crore.
International Finance Corporation’s
Multibagger Returns

10. IFC plans to sell 3.58 crore shares
in the upcoming IPO, which would
realize a notional gain of about
₹2,278 crore—an approximate 13-
fold multiple on the original
investment. Market sources
anticipate that the IPO pricing
could be even higher than the
rights issue price, potentially
delivering greater returns to IFC
and other shareholders alike.

11. The Tata Capital IPO is structured as a combination of a fresh
equity issuance and an offer for sale (OFS) by existing
shareholders, comprising a total of approximately 47.58 crore
shares.
IPO Structure and Timeline
Fresh Issue: Up to 21 crore new shares to raise capital for
business growth.
Offer for Sale (OFS): Up to 26.58 crore shares sold by existing
investors.

12. A noteworthy highlight in the IPO narrative is the lucrative early
investment by IFC in Tata Capital. IFC initially entered at an
adjusted equity price of about ₹25 per share back in 2011,
investing approximately ₹179 crore. Following the merger and
subsequent equity actions including a rights issue priced at ₹343
per share in July 2025, IFC’s 7.16 crore-share holding is now
valued at nearly ₹2,458 crore.
International Finance Corporation’s
Multibagger Returns

13. Tata Sons, the promoter, plans to divest up to 23 crore
shares.
IFC will sell 3.58 crore shares, marking a partial exit.
Currently, Tata Sons holds an 88.6% stake, while IFC owns about
1.8% before the OFS.
The capital raised from the fresh issue will primarily augment
Tata Capital’s Tier-1 capital, strengthening its borrowing capacity
and facilitating lending expansion, especially in infrastructure
and cleantech segments.

14. The IPO is slated for launch in the first half of October 2025,
following an extension granted by the Reserve Bank of India to
meet its regulatory deadline. It also fulfills RBI’s mandate for
NBFCs classified as upper-layer entities to be publicly listed
within three years of designation (Tata Capital was classified as
upper-layer in September 2022)

15. A noteworthy highlight in the IPO narrative is the lucrative early
investment by IFC in Tata Capital. IFC initially entered at an
adjusted equity price of about ₹25 per share back in 2011,
investing approximately ₹179 crore. Following the merger and
subsequent equity actions including a rights issue priced at ₹343
per share in July 2025, IFC’s 7.16 crore-share holding is now
valued at nearly ₹2,458 crore.
International Finance Corporation’s
Multibagger Returns

16. an approximate 13-fold multiple on the original investment.
Market sources anticipate that the IPO pricing could be even
higher than the rights issue price, potentially delivering greater
returns to IFC and other shareholders alike.
International Finance Corporation’s
Multibagger Returns

17. The Tata Capital IPO is structured as a combination of a fresh equity
issuance and an offer for sale (OFS) by existing shareholders,
comprising a total of approximately 47.58 crore shares.
IPO Structure and Timeline
Fresh Issue: Up to 21 crore new shares to raise capital for
business growth.
Offer for Sale (OFS): Up to 26.58 crore shares sold by existing
investors.
Tata Sons, the promoter, plans to divest up to 23 crore
shares.
IFC will sell 3.58 crore shares, marking a partial exit.

18. Currently, Tata Sons holds an 88.6% stake, while IFC owns about 1.8%
before the OFS.
The capital raised from the fresh issue will primarily augment
Tata Capital’s Tier-1 capital, strengthening its borrowing capacity
and facilitating lending expansion, especially in infrastructure
and cleantech segments.
The IPO is slated for launch in the first half of October 2025,
following an extension granted by the Reserve Bank of India to
meet its regulatory deadline. It also fulfills RBI’s mandate for
NBFCs classified as upper-layer entities to be publicly listed
within three years of designation (Tata Capital was classified as
upper-layer in September 2022).

19. Tata Capital’s IPO is notable for being among India’s largest financial
sector public issues in recent years and the Tata Group’s second IPO
launch within two years after Tata Technologies’ debut in November
2023.
Regulatory and Market Significance
Under RBI’s Scale-Based Regulation (SBR) framework, upper-layer
NBFCs face enhanced compliance and capital requirements,
including mandatory listing. Tata Capital’s timely IPO aligns with this
regulatory environment, setting an important benchmark for other
NBFCs aspiring public status.

20. From a market perspective, investor demand for Tata Capital shares
in the unlisted segment has surged, with price multiples rising
significantly in anticipation of the public listing. This IPO is expected
to attract a broad investor base, including institutional and retail
investors, due to Tata Capital’s strong brand, steady earnings
growth, and strategic positioning in emerging sectors like green
finance.

21. Tata Capital’s Growth Prospects and
Strategy
Post-IPO, Tata Capital aims to leverage the raised capital to expand
its lending business, especially in high-growth sectors such as
renewable energy, infrastructure finance, and sustainable projects.
The company’s cleantech finance subsidiary is well-positioned to
benefit from India’s commitment to climate goals and emission
reductions, driving demand for green lending.

22. Additionally, Tata Capital plans to deepen its retail and consumer
financing portfolios, diversifying its revenue streams while
maintaining a conservative risk profile. With robust financial health
and strong governance under the Tata Group umbrella, the company
is poised for continued market leadership.

23. Conclusion: An Attractive Investment
and Market Milestone
Tata Capital’s $2 billion IPO represents a major landmark for the
Indian financial markets, blending growth potential with regulatory
compliance. The transaction highlights the value creation generated
over the past decade through Tata’s cleantech finance strategy,
capped by the multibagger gains earned by early investor IFC.

24. As the IPO date approaches in October 2025, market participants will
be closely watching Tata Capital’s pricing, demand dynamics, and
likely listing gains, all of which are expected to contribute to one of
the marquee public offerings of the year.