Tata Capital Gears Up for IPO Launch in July After SEBI Greenlight

The Indian IPO calendar for July is expected to get even more crowded with another big listing on the horizon. After NSDL and JSW Cement, Tata Capital may soon join the fray. According to a report by a news agency, Tata Capital, a subsidiary of Tata Sons, is nearing the launch of its Rs 17,200 crore initial public offering (IPO).

The report cites sources who claim that the Securities and Exchange Board of India (SEBI) has approved Tata Capital's draft IPO papers, which were submitted through the confidential route.

Next Step – Public Filing of Red Herring Prospectus

As per standard regulatory procedure, after SEBI approves the confidential draft red herring prospectus (DRHP), the company is expected to file a revised version publicly on SEBI’s website.

“Once SEBI clears a confidential draft red herring prospectus (DRHP), the company would file an updated version publicly on the regulator’s website,”
The news agency reported.

The Red Herring Prospectus (RHP) is typically filed shortly before the IPO hits the market.

Is the Tata Capital IPO Coming in July?

Tata Capital may release its RHP in the first week of July, sources told ET, indicating a potential July IPO launch. However, at the time of publication, an email sent to Tata Capital remained unanswered.

One of India’s Largest Financial Sector IPOs

The proposed IPO is likely to be among the largest in India’s financial services industry. It will comprise a combination of fresh share issuance and an offer for sale by Tata Sons, which presently holds a 93% stake in Tata Capital.

The company filed its confidential DRHP with SEBI on April 5.

Why the IPO Is Mandatory: RBI’s "Upper-Layer" NBFC Norm

Under Reserve Bank of India (RBI) guidelines, Tata Sons and Tata Capital are categorized as "upper-layer" non-banking financial companies (NBFCs). This designation makes it mandatory for them to list by September 2025.

In January 2025, the RBI identified 15 such NBFCs under this category, requiring stricter compliance and timely listing.

Financial Strength of Tata Capital

Market Valuation Based on Unlisted Share Price

Unlisted shares of Tata Capital have surged 13.5% in the past six months, and are now trading at approximately Rs 1,050 per share, which pegs the company’s valuation at nearly Rs 3.8 lakh crore.

Robust Q4 and FY25 Financial Results

In the March quarter, Tata Capital reported a 31% increase in consolidated net profit, reaching Rs 1,000 crore, up from Rs 765 crore in the same quarter last year.

Revenue also witnessed a major leap, climbing nearly 50% to Rs 7,478 crore, compared to Rs 4,998 crore during the same period.

For the full FY25, the company posted a net profit of Rs 3,655 crore, an increase from Rs 3,327 crore in FY24. Total revenue for FY25 stood at Rs 28,313 crore, a significant jump from Rs 18,175 crore in the previous financial year.

Conclusion

Tata Capital’s anticipated public offering is poised to become a defining moment for India’s financial sector.Following SEBI’s approval of the company’s confidential draft documents, the focus now shifts to the next phase — the public submission of the Red Herring Prospectus (RHP), which may pave the way for a potential IPO launch in July 2025.

This offering is not just significant because of its estimated Rs 17,200 crore size, but also due to its implications for market confidence, investor sentiment, and the future of India’s non-banking financial institutions. With a strong performance in FY25, including a 31% jump in quarterly profits and a market valuation nearing Rs 3.8 lakh crore,

Tata Capital stands out as a financial powerhouse. Regulatory mandates from the RBI for upper-layer NBFCs to list by September 2025 only add urgency. If successful, this IPO could attract substantial retail and institutional investor participation.