Business Profile of Tata Capital Limited
Tata Capital Limited was incorporated in 2007, it is leading financial services company and a subsidiary of Tata Sons Private Limited. TCL operates as a non-banking financial company (NBFC) in India. Tata Capital offers a wide range of financial products and services for retail, corporate, and institutional clients across India through its extensive branch network. In key offering of company includes consumer loans (personal, home, education & property loans), wealth management (portfolio management & investment advisory), commercial finance (Term loans, working capital loans & equipment financing), private equity and investment banking (equity capital markets, M&A and structured finance solutions). Tata Capital headquarter is situated in Mumbai, Maharashtra and maintains a presence of over 723 branches across India.
Objective of Tata Capital IPO
As per the draft red hearing prospects, the IPO issue consists fresh issue and offer for sale. The fresh issue consists of 210,000,000 shares at the face value of ₨ 10.00 each aggregating up to ₹ XXXX millions and OFS consists 265,824,280 shares at face value of ₨ 10.00 each aggregating up to ₨ XXXX millions. There are fresh shares issues and OFS by company and main objective of company is to meet their future capital requirements including onward lending, arising out of the growth of its business and to ensure compliance with regulatory requirements on capital adequacy prescribed by the RBI & to meet offer expenses.
Details of Tata Capital IPO
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹10.00 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to 475,824,280 Equity Shares |
| Aggregating up to ₨ XXXX million | |
| Fresh Issue | Up to 210,000,000 Equity Shares |
| Aggregating up to ₨ XXXX million | |
| Offer For Sale | Up to 265,824,280 Equity Shares |
| Aggregating up to ₨ XXXX million | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not more than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Tata Capital IPO: Issue Price & Size
The issue price of TATA CAPITALLIMITED hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has fresh issue and OFS aggregating up to ₹ XXXX million at the price of ₨XXXX.
Launch Date of Tata Capital IPO
The IPO opening date of TATA CAPITALLIMITED hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Financial Statements of Tata Capital Limited
| Particulars (Rs in millions) | Mar 31 , 2025 | Mar 31 , 2024 | Mar 31 , 2023 |
| Revenue from operations | |||
| Interest income | 2,57,197.70 | 1,63,664.7 | 1,19,109.0 |
| Dividend income | 240.1 | 361.9 | 7.9 |
| Rental income | 2,722.5 | 2,034.1 | 2,692.6 |
| Fees and commission income | 17,797.50 | 10,458.8 | 5,695.8 |
| Net gain on fair value changes | 2,804.9 | 4,900.3 | 637.4 |
| Net gain on derecognition of associates | – | 328.4 | 8,145.8 |
| Net Gain on derecognition of financial instruments | 2,364.7 | – | – |
| Total revenue from operations | 2,83,127,4 | 1,81,748.2 | 1,36,288.5 |
| Other income | 571.3 | 235.6 | 86.4 |
| Total income ( I + II ) | 2,83,698.7 | 1,81,983.8 | 1,36,374.9 |
| Expenses | |||
| Finance costs | 1,50,296.40 | 95,682.3 | 66,006.4 |
| Impairment of investment in associates | ( 233.4 ) | 100.9 | 76.5 |
| Net ( gain ) / loss on derecognition of associates | 21.8 | . | – |
| Impairment on financial instruments | 28,268.30 | 5,922.6 | 5,742.9 |
| Employee benefit expenses | 28,122.5 | 18,500.9 | 12,941.8 |
| Depreciation , amortisation and impairment | 3,900.2 | 2,875.0 | 2,260.2 |
| Other expenses | 24,111.5 | 14,866.1 | 11,448.50 |
| Total expenses | 2,34,487.30 | 1,37,947.80 | 98,476.3 |
| Profit from continuing operations before exceptional items | 49,211.40 | 44,036.0 | 37,898.6 |
| Share in profit of associates | ( 25.8 ) | ( 115.7 ) | 1,467.0 |
| Profit from continuing operations before exceptional items and tax | 49,185.60 | 43,920.3 | 39,365.6 |
| Exceptional items | – | . | . |
| Profit before tax from continuing operations | 49,185.60 | 43,920.3 | 39,365.6 |
| Tax expense | |||
| Current tax | 11,412.1 | 10,717.6 | 10,703.9 |
| Deferred tax | 1,223.3 | ( 66.9 ) | ( 796.0 ) |
| Net tax expenses | 12,635.4 | 10,650.7 | 9,907.9 |
| Profit for the year from continuing operations | 36,550.2 | 33,269.6 | 29,457.7 |
Key financial ratios of Tata Capital Limited
| Particulars | Units | 2025 | 2024 | 2023 |
| Total Gross Loans | ( in millions ) | 2,265,529.6 | 1,612,310.8 | 1,201,968.6 |
| Retail Finance | ( in millions) | 1,411,142.1 | 950,316.8 | 681,879.3 |
| SME Finance | ( in millions ) | 594,629.8 | 467,614.8 | 392,028.3 |
| Corporate Finance | ( in millions ) | 259,757.7 | 194,379.2 | 128,061.0 |
| Total Gross Loans YoY Growth | % | 40.5 % | 34.1 % | 28.8 % |
| Interest Income | ( in millions ) | 257,197.7 | 163,664.7 | 119,109.0 |
| Finance Cost | ( in millions ) | 150,296.4 | 95,682.3 | 66,006.4 |
| Net Interest Income | ( in millions ) | 106,901.3 | 67,982.4 | 53,102.6 |
| Net Total Income | ( in millions ) | 133,402.3 | 86,301.5 | 70,368.5 |
| Operating Expenses | ( in millions ) | 56,134.2 | 36,242.0 | 26,650.5 |
| Credit Cost | ( in millions ) | 28,268.3 | 5,922.6 | 5,742.9 |
| Profit After Tax | ( in millions ) | 36,646.6 | 31,502.1 | 30,292.0 |
| Profit After Tax YoY Growth | % | 16.3 % | 4.0 % | 79.5 % |
| Net Interest Margin Ratio | % | 5.2 % | 5.0 % | 5.1 % |
| Operating Expenses Ratio | % | 2.7 % | 2.6 % | 2.6 % |
| Credit Cost Ratio | % | 1.4 % | 0.4 % | 0.6 % |
| Return On Equity | % | 12.6 % | 15.5 % | 20.6 % |
| Return On Assets | % | 1.8 % | 2.3 % | 2.9 % |
| Provision Coverage Ratio | % | 58.5 % | 74.1 % | 77.1 % |
| Total Equity | ( in millions ) | 313,838.1 | 234,171.3 | 1,73,398.60 |
| Total Borrowings | ( in millions ) | 2,084,149.3 | 1,481,852.9 | 1,133,359.1 |
Promoters & Shareholding Tata Capital IPO
As of date, according to the DRHP filed with SEBI promoters and promoter group have 95.60% shareholding in company.
| Name | Number of Equity Shares | % Equity Shares |
| Promoters | ||
| Tata Sons Private Limited | 3,575,064,262 | 88.6 |
| Members of Promoter Group | ||
| TMF Holdings Limited | 186,224,770 | 4.6 |
| Tata Investment Corporation Limited | 82,936,767 | 2.1 |
| Tata Motors Limited | 4,326,651 | 0.1 |
| Tata Chemicals Limited | 3,230,859 | 0.1 |
| The Tata Power Company Limited | 2,333,070 | 0.1 |
| Tata International Limited | 824,470 | – |
| Tata Consumer Products Limited | 613,598 | – |
| Total ( A ) | 3,855,554,447 | 95.6 |
| Public | 149,783,572 | 3.6 |
| Total (A+B) | 4,034,869,037 | 100 |
Should You Subscribe To Tata Capital IPO
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of Tata Capital IPO
Flagship company of Tata group
In Tata Group, Tata capital consider as a flagship services company, which is India’s most prestigious business group, with more than 150 years of legacy in market. Tata group includes Tata Capital, insurance services mainly through Tata AIA Life Insurance Company Limited and Tata AIG General Insurance Company Limited, and asset management services through Tata Asset Management Private Limited which has strong presence in financial services.
Third largest NBFC in country
Tata Capital is the third largest diversified NBFC in India based on our Total Gross Loans of ₹2,265.5 billion, and the most comprehensive amongst large diversified NBFCs in India based on the number of loan product offerings, as at March 31, 2025, according to CRISIL report. The suite of lending products, which company tailor to address their customers’ financial requirements based on understanding of customers, coupled with company ability to efficiently distribute its products, and has enabled company to build a diversified loan portfolio.
Omni-channel distribution model
The company has built an omni-channel distribution network which combines their pan-India branch network with an extensive network of external partners and its digital platforms. As at March 31, 2025, company had a pan-India presence through 1,496 branches spanning 1,102 locations across 27 States and Union Territories which is supported by an extensive network of external channels comprising over 30,000 DSAs, over 400 OEMs, over 8,000 dealers and over 60 digital partners.
Highest credit rating
The company is rated “AAA with stable outlook” from each of CRISIL, ICRA, CARE and India Ratings, and company commercial papers are rated “A1+” by each of CRISIL, ICRA and India Ratings, as at March 31, 2025. According to the CRISIL Report, this is the highest possible credit rating for NBFCs in India. Tata Capital has a diverse mix of borrowing, with no single lender contributing more than 10.0% of our total borrowings as of March 31, 2025. As a result of high ratings, diverse funding mix and long-term relationships with lenders, company Average Cost of Borrowings Ratio was 7.8% in Fiscal 2025.
Risk Factors of Tata Capital IPO
High provision coverage ratio
The provision coverage ratio of company was 58.5%, 74.1% and 77.1% as at March 31, 2025, March 31, 2024 and March 31, 2023, respectively. Any inability to provide adequate provisioning coverage for non-performing assets may adversely affect company business, results of operations, cash flows and financial condition. There is possibility of risk management controls and procedures, including company provisioning for NPAs, will be sufficient to prevent future losses on account of customer defaults which could have a materially adverse impact on business and operations.
Large portion in retail loans
Retail Finance loans typically comprise loans to salaried and self-employed individuals and owners of small businesses (“Retail Customers”) such as home loans, loans against property, personal loans, business loans, two-wheeler loans, car loans, commercial vehicle loans, construction equipment loans, loans against securities, microfinance loans, and education loans. Retail Finance comprised 62.3%, 58.9% and 56.7% of Total Gross Loans as at March 31, 2025, March 31, 2024 and March 31, 2023, respectively. Any adverse developments that reduce demand for loans will adversely affect company business, results of operations and prospects.
Exposure to real estate sector
In relation to Home Loans, Loans against Property and developer Finance, company have significant exposure to the real estate sector and any adverse trends affecting this sector could negatively affect company business and result of operations. The home Loans, Loans against Property and Developer Finance together amounted to 33.8%, 37.4% and 37.3% of Total Gross Loans of company as at March 31, 2025, March 31, 2024 and March 31, 2023, respectively.
Interest rate volatility
Interest rates are sensitive and may changes based on multiple factors beyond control of company, such as the monetary policies of the RBI, regulatory developments in the financial sector in India, domestic and international economic and political conditions and inflation. The company is affected by volatility in interest rates for both lending and treasury operations. Any adverse changes in interest rates can significantly affect company business, financial condition, results of operations and cash flows.
Tata Capital IPO Grey Market Premium
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies’ stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the Tata Capital Limited is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
