Tata Capital Prepares ₹17,000 Crore IPO After NCLT Clears Tata Motors Finance Merger

When you hear the name Tata, it instantly connects to trust, reliability, and a legacy that spans across industries, from cars and steel to IT and finance. Now, Tata Capital, the group’s financial services arm, is all set to hit the stock market with its highly talked-about Initial Public Offering (IPO). 

In this blog, we’ll take you through everything you need to know about the Tata Capital IPO, starting with what Tata Capital does, then moving on to its merger and shareholding structure, news, financial performance, and important IPO details like Tata Capital share price, market cap, IPO date, and shareholder quota. 

We’ll also cover regulatory compliance. Whether you’ve been following the latest Tata Capital IPO news or just want to know all the buzz, this blog has everything laid out for you.

Let’s get into it!

What is Tata Capital?

Tata Capital is a leading financial services provider and a part of the Tata Group, one of India’s most trusted and influential business giants. 

• Founded in 2007, it operates as a subsidiary of Tata Sons Limited. 

• The company offers extensive financial services, including personal loans, wealth advisory, business finance, and infrastructure funding.

• Based in Mumbai, Tata Capital has a network of over 723 branches across the country, serving retail customers, businesses, and institutions alike.
  

With a clear understanding of Tata Capital, let’s look at its merger plans and shareholding structure.

Merger and Shareholding Structure of Tata Capital

The merger between Tata Capital and Tata Motors Finance Limited (TMFL) marks a major milestone in Tata Capital’s journey, especially as it moves closer to its IPO. With approval from the Reserve Bank of India (RBI), this merger aims to combine the strengths and resources of both companies, positioning Tata Capital among the top 12 Non-Banking Financial Companies (NBFCs) in India.

Key Highlights of the Merger

• Share Issuance: As part of the merger process, Tata Capital will issue shares to TMFL shareholders. This move will result in Tata Motors securing a 4.7% stake in the merged entity.

• Ownership Structure: As of March 31, 2024, Tata Sons holds around 92.83% of Tata Capital’s shares. The remaining shares are largely held by other Tata Group companies and affiliated trusts.
  

Tata Capital IPO News

• Tata Capital has engaged Cyril Amarchand Mangaldas and Kotak Mahindra Capital as lead advisors for its IPO, with the Draft Red Herring Prospectus (DRHP) submission contingent on NCLT merger approval.
  

Now that the merger, shareholding structure and news are clear, let’s explore the financial performance of Tata Capital.

Financial Performance of Tata Capital

As of March 18, 2025, Tata Capital’s financial performance is as follows:

• Outstanding Shares: 3,67,58,57,643 shares

• Earnings Per Share (EPS): ₹8.57

• Price-to-Earnings Ratio (P/E): 109.92

• Return on Equity (ROE): 15.46%
  

(Source: Financial reports)

Financial Analysis (FY24)

For the financial year 2024, Tata Capital’s key financial figures are:

• Revenue from Operations: ₹18,174.82 crore

• Profit After Tax (PAT): ₹3,150.21 crore
  

(Source: Financial reports)

With Tata Capital’s financial performance in mind, let’s look at what’s planned for its IPO.

Tata Capital IPO Details

Tata Capital plans a large-scale IPO worth approximately ₹17,000 crore (around $2 billion). The IPO will move forward after receiving the final nod from the National Company Law Tribunal (NCLT) for the merger with Tata Motors Finance. It will include about 2.3 crore equity shares, consisting of both a fresh issue.

If successful, this would be one of the biggest initial share sales in the country’s financial sector. This would also be the Tata Group’s second public market debut in recent years after the listing of Tata Technologies in November 2023.

• Tata Capital Market Cap: As of March 18, 2025, Tata Capital’s market capitalization is ₹3,46,265.79 crore. (Source: Financial reports)

• Tata Capital IPO Date: The exact date is yet to be announced.

• Tata Capital IPO Share Price: As of March 18, 2025, Tata Capital’s unlisted share price stands at ₹942 per share. However, share prices may fluctuate daily, so staying updated with the latest Tata Capital IPO news is important to track any changes. (Source: Financial reports)

• Tata Capital IPO Shareholder Quota: The shareholder quota is reserved for those who hold shares in Tata Capital’s parent company, Tata Sons. Anyone holding at least one share of Tata Sons as of the record date is eligible to apply under this quota.
  

Regulatory Compliance of Tata Capital IPO

Tata Capital is gearing up for its IPO while meeting regulatory requirements set by the RBI. 

• As an upper-layer NBFC, Tata Capital must list on the stock exchanges by September 2025. 

• This requirement stems from RBI guidelines that mandate all upper-layer NBFCs to go public within three years of their classification, which Tata Capital received in September 2022. 

• Before moving forward with the IPO, Tata Capital also needs final approval from the National Company Law Tribunal (NCLT) for its merger with Tata Motors Finance.
  

Conclusion

Tata Capital’s upcoming IPO is expected to be a significant milestone in India’s financial sector, especially following Tata Technologies’ successful listing in 2023. The process is expected to accelerate once the NCLT approves the merger, with regulatory approvals still underway. 

Supported by the company’s financial track record and strategic growth plans, the Tata IPO has generated substantial market interest. Staying updated on key developments, market trends, and share price movements will be crucial as the listing approaches.

Disclaimer

The information provided in this blog is for informational purposes only. It is based on publicly available data and should not be considered financial advice or a recommendation. The Tata Capital IPO details, including share price, date, and market cap, are subject to change based on regulatory approvals and market conditions. Always consult a certified financial expert before making any financial decisions.