Tata Capital, the financial services arm of the Tata Group, made its market debut with an Initial Public Offering (IPO) of Rs 15,512 crore, the largest IPO of 2025 and NBFC’s largest ever.
The company’s shares listed at Rs 330 on the NSE and BSE, a modest 1.2% premium over the upper end of its price band of Rs 326 per share. While the stock later climbed to Rs 332, the initial performance was considered muted. The IPO, which was open for subscription from October 6 to October 8, 2025, was subscribed 1.96 times overall, receiving bids for 65.33 crore shares against 33.34 crore shares on offer.
This public offering was a combination of a fresh issue of 21 crore shares and an Offer for Sale (OFS) of 26.58 crore shares. The proceeds from the fresh issue will be used to strengthen the company’s Tier-1 capital base, supporting its future lending capacity and overall growth. The listing marks the Tata Group’s second public offering in recent years, following Tata Technologies’ debut in November 2023.
The IPO was not a voluntary move but a requirement from the Reserve Bank of India (RBI). As an “upper-layer” Non-Banking Financial Company (NBFC), Tata Capital was mandated by the RBI’s scale-based regulatory framework to get listed within three years of its classification. Tata Capital was designated an upper-layer NBFC in September 2022, making the IPO a matter of regulatory compliance.
Despite the subdued listing performance, analysts maintain a positive long-term outlook for the company. Tata Capital is the third-largest diversified NBFC in India, with a robust loan book of Rs 2.33 lakh crore as of June 2025. The company has shown consistent financial growth, with revenue from operations rising 55.8% in FY2025 and net profits growing by 16.3% in the same period. Its strong brand credibility, diversified business mix, and low gross non-performing asset (NPA) ratio of just 2.1% position it well for future growth in India’s expanding financial services space. The IPO is seen as a reasonable entry point for patient investors who believe in the company’s long-term value creation.
