The IPO valuation has increased from USD 11 billion in April to approximately USD 18 billion, driven by strong investor interest following successful global roadshows in major financial hubs.

Asset quality remains stable, with gross bad loans at 1.9% and net bad loans at 0.8%, supported by a provision coverage ratio of 58.5%.

Recent comparable IPOs, such as Bajaj Housing Finance, which had a 135% first-day premium in September 2024, highlight the strong investor appetite for financial sector listings.

Funds raised from the IPO will be used to strengthen Tata Capital’s Tier-1 capital base and support its future lending growth, aligning with its strategic expansion plans.

Tata Capital is preparing for what could be the largest IPO in India's financial sector, with plans to launch a $2 billion offering starting the week of September 22, aiming for a valuation of around $11 billion, and potentially reaching $18 billion after investor interest.

The IPO is expected to debut by September 30, and if successful, it will be the largest IPO of 2025, following Tata Group's previous listing of Tata Technologies in November 2023.

Tata Capital's financial health remains strong, with a net interest margin of 5.2% in FY25 and a net profit of Rs 1,041 crore in Q1 FY26, more than doubling from the previous year.

Since 2007, Tata Capital has served over 7 million customers across lending, insurance, credit cards, wealth management, and private equity, demonstrating its extensive market presence.

The company's assets have grown significantly, with gross loans reaching Rs 2.26 lakh crore as of March 2025, and profit after tax increasing to Rs 3,646.6 crore in FY25 from Rs 3,029.2 crore in FY23.

Tata Capital's recent Q1 FY26 results show a net profit of Rs 1,041 crore and total income of Rs 7,692 crore, both significantly higher than the previous year, reinforcing its robust financial position.

The IPO aligns with RBI's mandate for upper-layer NBFCs like Tata Capital, classified in September 2022, to list within three years, marking a key regulatory milestone.

The offering will include a fresh issue of up to 21 crore shares and an offer for sale of 26.58 crore shares, with Tata Sons and IFC planning to divest shares, including Tata Sons' plan to sell 23 crore shares.