About Tata Capital Limited
Founded in 1991 under the name Primal Investments and Finance Limited, as public limited company under the Companies Act, 1956. On May 8, 2007, the entity assumed the name Tata Capital Limited, receiving a new certificate of incorporation from the Registrar of Companies, Maharashtra.
August 2, 2024 – RBI granted Tata Capital a certificate of registration to operate as an NBFC – Investment and Credit Company, enabling it to carry on non-banking financial services without accepting public deposits. Today, it stands as a leading player in the diversified financial services sector. Headquartered in Mumbai with pan-India operations and subsidiaries in retail, commercial, and infrastructure finance. Promoted by Tata Sons Private Limited, ensuring brand trust and credibility.
History & Land Footprint
- 2008–2010: Expanded into retail and commercial finance, establishing strong lending operations.
- 2011 onwards: Entered infrastructure finance and advisory services, broadening its service portfolio.
- In February 2025, Tata Capital approved plans for its Initial Public Offering (IPO). The proposal includes issuing 230 million new equity shares while existing shareholders exit through an Offer for Sale
Financial Snapshot (₹ Cr)
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Profit After Tax | 366.47 | 315.02 | 302.92 |
| EBITDA | 9,340 | 8,120 | 6,480 |
| Total Gross Loans | 22655.3 | 16123.11 | 12019.69 |
| Interest Income | 2571.98 | 1636.65 | 1191.09 |
Pre-IPO Placement Details
• The IPO comprises a Fresh Issue of up to 210 million equity shares and an Offer for Sale of up to 265.82 million shares.
• Promoter Tata Sons Private Limited to sell up to 230 million equity shares.
• International Finance Corporation (IFC) to sell up to 35.82 million equity shares.
• The total IPO size is up to 475.82 million equity shares of face value ₹10 each.
Revenue and Operating Performance
• Revenue primarily from interest income across lending verticals.
• Operating income also includes fee-based services like wealth management and distribution.
• The company has shown steady growth in revenue, supported by digital expansion and increased loan book.
• Operational efficiency improved with lower credit costs and better NPA management.
Financial Performance
• Strong growth in assets under management and profitability in FY 2025.
• Healthy capital adequacy ratio maintained post-merger with Tata Motors Finance Limited.
• Positive cash flow from operations reflecting strong loan recoveries.
• Balance sheet strength supported by equity infusion and prudent debt management.
Key Risks
• Exposure to credit risk due to lending operations.
• Regulatory changes in NBFC sector could affect growth trajectory.
• Increased competition from banks and fintech players may pressure margins.
• Market volatility may affect valuation post-listing.
Pros & Cons of Investing in an IPO
• Pros: Backed by Tata Group, diversified business model, strong brand trust, steady financial growth.
• Cons: Competitive NBFC sector, regulatory uncertainties, and market risks associated with first-time listing.
Why This IPO Matters
• Marks the first public issue of Tata Capital Limited, opening new opportunities for investors.
• IPO will unlock shareholder value and strengthen the company’s capital base.
• Provides investors exposure to India’s expanding credit and financial services sector.
• Reinforces Tata Capital’s positioning among top NBFCs in India.
Price Related Information
• Each equity share of the company carries a nominal value of ₹10.
• Final price band and minimum bid lot to be announced before opening.
• The offering adopts a full book-building process, ensuring transparent bidding under SEBI norms.
• Shares proposed to be listed on BSE and NSE post-issue.
Valuation Insights
• IPO expected to unlock value for shareholders.
• Valuation benchmarked against leading NBFCs like Bajaj Finance, HDFC Ltd.
Read More: Fractal Analytics: Global Recognition
Relative Positioning & Peer Analysis
• Peers include Bajaj Finance, HDFC, L&T Finance.
• Tata Capital stands out with diversified portfolio and Tata Group backing.
• Strong market share in multiple lending categories.
High-Performing Sector Valuation Difference
• NBFC sector valuations driven by growth prospects and asset quality.
• Tata Capital positioned favorably with strong governance and brand trust.
• Premium valuation expected compared to smaller peers.
Future Outlook
• Strong growth potential with India’s credit demand expanding.
• IPO proceeds to be used for capital infusion and business expansion.
• Digital transformation and sustainable finance to drive long-term growth.
Investment Thesis
• Backed by Tata Group, ensuring credibility and trust.
• Diversified business model reduces risk exposure.
• Attractive IPO valuation provides opportunity for long-term investors.
Conclusion
- Tata Capital Limited demonstrates a strong blend of financial stability, operational efficiency, and growth prospects, positioning it as a compelling investment opportunity. Backed by robust financials, experienced management, and Tata brand trust.
FAQs
Q1. What is the business model of Tata Capital Limited?
Tata Capital Limited operates as a diversified financial services provider and functions primarily as a Non-Banking Financial Company (NBFC). Its business model revolves around lending solutions across multiple segments including retail loans, corporate financing, infrastructure finance, and SME lending.
Q2. Who are the promoters of Tata Capital Limited?
Tata Sons holds a significant majority stake, reinforcing Tata Capital’s credibility and brand trust.
The backing of Tata Group provides access to strategic synergies, strong governance, and enhanced financial strength.
Q3. What are the key risks involved in investing in Tata Capital Limited IPO?
Credit Risk: Being a lending-focused NBFC, the company faces risks from loan defaults and Non-Performing Assets (NPAs).
Regulatory Risk: Changes in RBI and SEBI regulations could impact lending policies, leverage ratios, and growth outlook.
Q4. How does Tata Capital compare with peers like Bajaj Finance and HDFC?
Tata Capital has the advantage of being backed by the Tata Group, giving it a strong foundation of brand trust and governance.
Compared to Bajaj Finance, which is highly focused on consumer lending, Tata Capital has a more diversified portfolio across retail, SME, and infrastructure finance.
Q5. How does Tata Capital Limited plan to utilize the funds raised through its IPO?
The proceeds from the IPO will primarily be used to augment the company’s capital base to support future growth.
Funds will also be directed towards expanding lending operations, enhancing digital platforms, and improving infrastructure.
A portion of the proceeds will go towards general corporate purposes, ensuring flexibility in addressing operational and strategic needs.
This capital infusion is expected to strengthen balance sheet resilience and position Tata Capital for long-term expansion.