Tata Capital Limited is a diversified financial services company, part of the Tata Group, established in 1991. Renamed in 2007, it operates as a leading NBFC headquartered in Mumbai. The company offers financial products ranging from retail loans to infrastructure financing. Tata Capital Limited is a part of the legendary Tata Group, one of India’s oldest and most trusted business houses. Headquartered in Mumbai, it serves people throughout India with both branches and digital channels.
Industry Overview
The financial services industry in India is experiencing transformative growth. Non-Banking Financial Companies (NBFCs) play a pivotal role in expanding access to credit across retail, SME, and infrastructure segments. Tata Capital Limited, as part of the Tata Group, continues to benefit from this momentum through its diversified product portfolio and brand strength.
Resident Shareholder
Resident shareholders form a key base of Tata Capital’s investor community. Their involvement reflects long-term confidence in the company’s governance, profitability, and ability to deliver consistent returns.
Non-resident Shareholder
Non-resident investors add depth and diversity to Tata Capital’s shareholding pattern. They also provide
Business Model and Features
- Operates as a systemically important NBFC under RBI regulations.
- Provides services including personal loans, SME financing, housing finance, wealth management, and advisory solutions.
- Diversified model spreads risk across multiple financial verticals.
- Digital-first approach with customer-centric platforms to improve access to credit.
Key Highlights of NBFC Sector
- NBFCs contributed significantly to India’s credit growth, especially in retail, housing, auto, and MSME financing.
- MSME, housing, and auto financing together accounted for nearly 51% of overall NBFC credit in FY2025.
- Infrastructure remains a large segment, but its share has gradually declined from earlier years.
- Retail loan growth in NBFCs is expected to remain steady at 17–18% in FY2026, supported by housing and vehicle demand.
- The RBI has introduced stricter norms to manage risks in unsecured lending, including microfinance and personal loans.
- Despite global uncertainties, NBFCs are expected to remain resilient, aligning with India’s projected GDP growth of 6.5% in FY2026.
Industry Peer Group P/E Ratio
| Particulars | P/E Ratio |
|---|---|
| Highest | 32.6 |
| Lowest | 12.1 |
| Average | 24.3 |
Industry Peer Group P/B Ratio
| Particulars | P/B Ratio |
|---|---|
| Highest | 5.0 |
| Lowest | 2.7 |
| Average | 3.7 |
IPO Information
- IPO includes Fresh Issue of 210 million equity shares and an OFS of 265.82 million shares.
- Face Value per share: ₹10.
- IPO conducted through 100% book-building process as per SEBI norms.
- Listing proposed on BSE and NSE.
Shareholding Pattern
- Promoter: Tata Sons Private Limited is the primary promoter.
- Pre-IPO: Tata Sons holds majority stake alongside IFC as a shareholder.
- Post-IPO: Dilution expected with increased public participation.
- Tata Sons’ average acquisition cost: ₹34 per share, IFC’s average cost: ₹25 per share.
Market Capitalization
- Estimated Market Cap: Between ₹1.6 to ₹1.8 lakh crore.
- Growth driven by expansion in lending business and digital transformation.
- Valuation supported by strong brand equity and governance standards.
India expected to remain one of the fastest growing economies in the world
- Going forward, the expectation of slower global growth, along with anticipated reciprocal tariffs on India after three months, is likely to exert downside risks to Crisil’s 6.5% growth forecast for fiscal 2026.
- The tax benefits announced in Union Budget 2025-2026 and increased allocations towards key asset- and employment generating schemes are expected to support consumption. Easing monetary policy by the Reserve Bank of India (RBI) is expected to support discretionary consumption. Crisil Intelligence expects one more repo rate
Key Growth Drivers
- India has the world’s largest population.
- As per Census 2011, India’s population was approximately 1.3 billion, comprising nearly 187 million households.
- Population grew at nearly 1.5% CAGR between 2001 and 2011.
- Crisil Intelligence estimates population increased at 1.1% CAGR between 2011 and 2021, reaching 1.4 billion.
- India’s population is projected to reach 1.5 billion by 2031 from 1.4 billion in 2021.
- The number of households is expected to rise to approximately 385 million in 2031 from 245 million in 2021.
- This represents a CAGR of 4.6% from FY21 to FY31 for household growth.
Conclusion
- Tata Capital Limited’s IPO represents a strong opportunity for investors seeking exposure to India’s financial sector.
- Its diversified business model, strong financial growth, and Tata Group backing position it as a robust long-term bet.
- While risks exist, its valuation, governance, and market expansion highlight significant growth potential.
FAQs
Q1. What is Tata Capital Limited’s business model?
Tata Capital operates as a diversified NBFC offering retail, corporate, housing, and infrastructure finance along with advisory services.
Q2. Who promotes Tata Capital Limited?
Tata Sons Private Limited is the principal promoter of Tata Capital Limited.
Q3. How did Tata Capital perform financially in FY2025?
The company reported a PAT of ₹36,646.6 crore with strong year-on-year growth of ~16%.
Q4. What is the size of Tata Capital’s IPO?
The IPO includes a Fresh Issue of 210 million shares and an OFS of 265.82 million shares.
Q5. What is the estimated market capitalization post-IPO?
The market cap is expected to be in the range of ₹1.6 to ₹1.8 lakh crore.