Tata Capital IPO Likely In July; SEBI Clears Draft As Market Buzz Intensifies: Report

Tata Capital reportedly might submit its final RHP in the first week of July. Market speculation continues to grow around the potential launch date.

Tata Capital, along with its parent Tata Sons, is categorised by the Reserve Bank of India as an “upper-layer” non-banking financial company (NBFC).Tata Capital, along with its parent Tata Sons, is categorised by the Reserve Bank of India as an “upper-layer” non-banking financial company (NBFC).

Source : Groww

Tata Capital may be preparing to enter the public markets as early as July, adding to the flurry of IPO activity expected next month. After names like NSDL and JSW Cement, the financial arm of Tata Sons appears to be the next major player joining the IPO queue.

According to a report by the Economic Times, the company is now a step closer to launching its Rs 17,200 crore initial public offering.

Citing unnamed sources, the news organisation reported that the Securities and Exchange Board of India (SEBI) has given its nod to the draft papers submitted by Tata Capital through the confidential filing route.

Following this clearance, the company is expected to file a revised version of the red herring prospectus (RHP), which will be made publicly available on SEBI’s website ahead of the IPO. The RHP typically contains detailed information about the offering and is a key step before the public launch.

IPO Likely in Early July

The publication also reported that Tata Capital may look to submit its final RHP in the first week of July. Market speculation continues to grow around the potential launch date. If the IPO does happen in July, it would mark one of the biggest listings in the Indian financial sector in recent years.

The proposed offering will comprise both a fresh issue of equity shares and an offer for sale by parent firm Tata Sons, which currently holds a 93 per cent stake in Tata Capital. The confidential draft red herring prospectus was filed earlier on April 5.

Tata Capital, along with its parent Tata Sons, is categorised by the Reserve Bank of India as an “upper-layer” non-banking financial company (NBFC). Under this classification, companies must mandatorily list on the stock exchange by September 2025. In its January list of 15 upper-layer NBFCs for FY2024–25, the RBI had included Tata Capital, thereby setting a firm timeline for its market debut.

Strong Financials Support Listing Plans

Tata Capital’s recent financial performance offers strong support for its IPO plans. In the March quarter, the company reported a consolidated net profit of Rs 1,000 crore, reflecting a 31 per cent jump from Rs 765 crore in the same period the previous year. Operating revenue also surged by nearly 50 per cent, increasing from Rs 4,998 crore to Rs 7,478 crore.

For the full financial year 2024–25, Tata Capital posted a profit of Rs 3,655 crore, compared to Rs 3,327 crore in FY24. The company’s total revenue for the year stood at Rs 28,313 crore, up significantly from Rs 18,175 crore a year earlier.

Meanwhile, in the unlisted market, Tata Capital’s shares have gained 13.5 per cent over the past six months and are currently trading around Rs 1,050 apiece. This pegs the company’s valuation at approximately Rs 3.8 lakh crore, highlighting strong investor confidence ahead of its potential listing.