IPO-Bound Tata Capital Q1 Profit Surges 120% To ₹1,041 Crore; Eyes $2 Billion IPO

New Delhi, Aug 18: Non-banking financial company Tata Capital on Monday reported more than doubling of its consolidated net profit to Rs 1,040.93 crore for the quarter ended June 2025. In the same quarter last year, the IPO-bound company had reported a profit of Rs 472.21 crore.

Revenue Rises on Higher Income

Total income rose to Rs 7,691.65 crore for the quarter under review from Rs 6,557.40 crore in the April-June quarter of FY2025, Tata Capital said in a regulatory filing.

Mega IPO in the Pipeline

Earlier this month, Tata Capital filed updated draft papers for a mega initial public offering (IPO), with people familiar with the matter pegging the issue size at USD 2 billion (Rs 17,200 crore). This would value the company at around USD 11 billion.

IPO Structure and Shareholding

According to the updated draft red herring prospectus (DRHP), the proposed IPO of 47.58 crore shares comprises a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares. Under the OFS component, Tata Sons will offload 23 crore shares, while the International Finance Corporation (IFC) will divest 3.58 crore shares.

Largest Financial Sector IPO in India

Currently, Tata Sons holds an 88.6 per cent stake in Tata Capital, while IFC owns a 1.8 per cent holding. If successful, this IPO will become the largest public issue in India's financial sector. It will also mark the Tata Group's second public listing in recent years, following the debut of Tata Technologies in November 2023.

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Tata Capital IPO Gets Sebi Nod, Plans ₹2 Billion Offer With Fresh Issue & OFS

RBI Listing Mandate

The public issue is being undertaken in line with the Reserve Bank of India's (RBI) listing mandate for upper-layer NBFCs, which requires them to be listed within three years of classification. Tata Capital was designated as an upper-layer NBFC in September 2022.

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