Tata Capital IPO

About Tata Capital IPO

The offer consists of both a fresh issue and an offer for sale component. The fresh issue will include up to 21,00,00,000 equity shares of face value of ₹10 each aggregating up to ₹ TBA crores. The offer for sale portion includes up to 26,58,24,280 equity shares of face value of ₹10 each aggregating up to ₹ TBA crores. The total number of shares and aggregate amount are 475,824,280 equity shares of aggregate value TBA.

Tata Capital Limited is the main financial services company of the Tata Group and a subsidiary of Tata Sons Private Limited. Since the commencement of their lending operations in 2007, they have served 7.0 million customers up to 31 March 2025. They are categorised as an Upper Layer NBFC by the RBI.

Through their comprehensive suite of 25+ lending products, they cater to a diverse customer base comprising salaried and self-employed individuals, entrepreneurs, small businesses, small and medium enterprises, and corporates. Additionally, they distribute third-party products, viz. insurance and credit cards, offer wealth management, and act as sponsor and investment manager to PE funds.

Objectives of Tata Capital IPO

• The company proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting the company’s Tier – I capital base to meet their company’s future capital requirements including onward lending, arising out of the growth of our business.

• A portion of the proceeds from the Fresh Issue will be used towards meeting Offer Expenses.

• The company expects to receive the benefits of listing of the Equity Shares on the Stock Exchanges, including enhancement of the company’s brand name and creation of a public market for our Equity Shares in India.

Industry Outlook

According to the CRISIL Report, NBFCs have shown remarkable resilience and gained importance in the financial sector ecosystem, growing from less than ₹2,00,000 crores AUM at the turn of the century to ₹48,00,000 crores at the end of fiscal 2025. NBFC credit growth has historically trended above India's GDP growth and is expected to continue rising at a faster pace. Going forward, CRISIL projects NBFC credit to grow at 15-17% between fiscal 2025 and fiscal 2028, driven by growth across retail, MSME and corporate segments.

Tata Capital Company Information

Tata Capital Limited is the flagship financial services company of the Tata Group and a subsidiary of Tata Sons Private Limited, the holding company of the Tata Group and the Promoter of their Company. According to the CRISIL Report, with a legacy spanning over 150 years, the Tata Group is one of India’s most distinguished business groups, comprising companies across 10 verticals such as automotive, technology, steel, financial services, aerospace and defence, and consumer and retail. The “Tata Group” brand was recognised as the most valuable brand in India as per the Brand Finance India 100 2025 report.

Since commencing their lending operations in 2007, they have served 7.0 million customers up to 31 March 2025. Through their comprehensive suite of 25+ lending products (the “Lending Business”), they cater to a diverse customer base comprising salaried and self-employed individuals, entrepreneurs, small businesses, small and medium enterprises, and corporates. They are focused on Retail and SME Customers, with loans to such customers forming 88.5% of their Total Gross Loans as at 31 March 2025.

They operate an omni-channel distribution model that combines their wide branch network, a robust partner ecosystem, and a strong digital presence, all of which work together to deliver a superior customer experience. They have an extensive pan-India distribution network comprising 1,496 branches across 27 States and Union Territories, as at 31 March 2025. Their branches are typically staffed with an in-house team responsible for customer engagement, acquisition, loan processing, documentation, and servicing.

Strengths of Tata Capital IPO

• Flagship financial services company of the Tata Group, with a legacy of over 150 years.
• Third-largest diversified NBFC in India, with the most comprehensive lending product suite.
• Omni-channel distribution model, comprising their pan-India branch network, partnerships and digital platforms.
• Prudent risk culture and robust credit underwriting and collections capabilities, resulting in stable asset quality.
• Digital and analytics at the core of their business, driving high-quality experience and business outcomes.
• Highest credit rating with a diverse liability profile.
• Consistent track record of strong financial performance highlighted by attractive asset quality.
• Experienced management backed by a team of dedicated professionals.

Risks of Tata Capital IPO

• Delay or default in repayment of principal or interest on loans.
• Changes in their loan-mix may adversely affect their financial metrics and asset quality.
• Any adverse developments that reduce demand for loans amongst retail customers and/or increase loan default rates amongst retail customers.
• Any negative trends affecting the real estate sector.
• Any adverse changes in interest rates.
• Any improper use of the associated trademarks of the "Tata" brand by the licensor or any other third parties, or any negative publicity affecting the brand.
• Dependence on the performance of the small and medium enterprises sector in India.
• Any disruption, negligence, fraud, deficiency or inefficiency in the services provided by third parties.
• Threat of fraud and cyber-attacks targeted at disrupting their services and/or stealing sensitive internal data or customer information.
• Fluctuations in the market values of their investment portfolio.

Source: All the financial information for listed industry peers mentioned above is on a consolidated basis (unless otherwise available only on standalone basis) and is sourced from the annual report or financial statements as available of the respective company for the financial year ended March 31, 2025 submitted to stock exchanges. Further, data for HDB Financial Services Limited except for P/E and P/B has been sourced from Prospectus dated June 28, 2025. ^P/E ratio for the peer companies are computed based on closing market price as on August 1, 2025 at NSE, divided by Diluted EPS (on consolidated basis) based on the financial results or annual report of the company for the Financial Year 2025, except for Bajaj Finance Limited which has been adjusted for bonus issue and face value split undertaken after March 31, 2025. *Financial information of our Company has been derived from the Restated Consolidated Financial Information. #To be included in respect of our Company in the Prospectus based on the Offer Price. $P/B ratio for the listed industry peers has been computed based on the closing market price of equity shares on NSE as on August 1, 2025 divided by the net asset value per equity share as of the last day of the year ended March 31, 2025, except for Bajaj Finance Limited which has been adjusted for bonus issue and face value split undertaken after March 31, 2025.

Anchor Investor Bidding Date: TBA

Registrar: MUFG Intime India Private Limited Book Running Lead Managers: Kotak Mahindra Capital Company Limited Axis Capital Limited BNP Paribas Citigroup Global Markets India Private Limited HDFC Bank Limited HSBC Securities and Capital Markets (India) Private Limited ICICI Securities Limited
IIFL Capital Services Limited J.P. Morgan India Private Limited SBI Capital Markets Limited

Tata Capital Business Model

Tata Capital Limited operates Lending and Non-lending businesses. In their Lending Business, they provide loans to Retail, SME and Corporate Customers. Their Non-lending Businesses include distribution of third-party products such as insurance and credit cards, providing wealth management services, and acting as a sponsor and investment manager to PE funds.

Tata Capital Growth Trajectory

Tata Capital Limited’s total income increased by 55.9% to ₹28,369.87 crores in fiscal 2025 from ₹18,198.38 crores in fiscal 2024, primarily due to an increase in their revenue from operations.

Their revenue from operations increased by 55.8% to ₹28,312.74 crores in fiscal 2025 from ₹18,174.82 crores in fiscal 2024. Their revenue from operations (excluding TMFL) increased by 29.6% to ₹23,546.26 crores in fiscal 2025 from ₹18,174.82 crores in fiscal 2024. This is primarily due to an increase in interest income, fees and commission income which was partially offset primarily by a decrease in net gain on fair value changes and net gain on derecognition of associates.

Their other income increased to ₹57.13 crores in fiscal 2025 from ₹23.56 crores in fiscal 2024, due to an increase in other miscellaneous income and a decrease in net gain on sale of assets given under operating lease/rental basis.

As a result of the foregoing factors, their profit for the year from continuing operations increased by 9.9% to ₹3,655.02 crores in fiscal 2025 from ₹3,326.96 crores in fiscal 2024.

Tata Capital Market Position

According to the CRISIL Report, Tata Capital Limited is the third-largest diversified NBFC in India with Total Gross Loans of ₹2,26,550 crores as at 31 March 2025; they are among the fastest-growing large diversified NBFCs in India based on growth in Total Gross Loans, with Total Gross Loans growing at a CAGR of 37.3% from 31 March 2023 to 31 March 2025; and have a track record of sustained growth while maintaining their asset quality, as evidenced by their metrics such as Gross Stage 3 Loans Ratio of 1.9%, Net Stage 3 Loans Ratio of 0.8%, and Provision Coverage Ratio (“PCR”) of 58.5%, which are among the best across large diversified NBFCs in India as at 31 March 2025.

Their pan-India footprint is geographically widespread, with 42.0% of branches located in the South, 23.3% in the North, 19.2% in the East, and 15.6% in the West, as at 31 March 2025. This distribution ensures that they are well-represented in every region of India.

As on 31st March, 2025, the company’s Total Income, Profit After Tax, and EBITDA stood at ₹28,369.870 crores, ₹3655.020 crores, and ₹20,338.220 crores, respectively.

How to apply for Tata Capital IPO?

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.

How to check allotment status of Tata Capital IPO?

1. Visit the Registrar's Website

To check the IPO allotment status for Tata Capital Limited IPO, visit the official website of MUFG Intime India Private Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the ‘Submit’ button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.

2. Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.

On the BSE IPO page, follow these steps

• Select 'Equity' from the dropdown menu
• Choose 'Tata Capital Limited' in the next dropdown
• Enter your application number
• Enter your PAN
• Click 'Search'

Your Tata Capital Limited IPO allotment status will be displayed.

3. Verify on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Tata Capital Limited IPO allotment status.

Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:

• Application number
• PAN

Then click 'Submit'. Your Tata Capital Limited IPO bid and allotment details will be displayed.