Tata Capital earns designation of $16 billion before initial public offering; International Finance Corporation expected to reap rewards
Tata Capital, the financial services arm of the Tata Group, has announced plans for an Initial Public Offering (IPO) by September 2025. The proposed offering will include a fresh issue of up to 230 million equity shares, alongside an offer-for-sale (OFS) by existing shareholders.
The IPO is driven by both business growth objectives and regulatory requirements. Following the Reserve Bank of India's (RBI) Scale-Based Regulation (SBR) framework, Tata Capital was classified as an Upper Layer Non-Banking Financial Company (NBFC) in September 2022. This classification demands stricter regulatory oversight and higher capital requirements, motivating the company to strengthen its Tier-I capital through this public issue.
The freshly raised capital is intended primarily for augmenting Tata Capital's Tier-I capital base to support future lending operations and growth in the competitive NBFC sector. Tata Capital offers a broad range of financial products including home loans, business loans, personal loans, rural empowerment loans, vehicle loans, and also provides wealth management and investment banking services.
As of August 12, 2025, Tata Capital's pre-IPO unlisted shares were trading at around ₹775. This figure is notably higher than the valuation implied by the IPO price band, indicating a potentially attractive entry point for investors through the IPO.
Tata Capital is known for its lending business and also houses two private equity fund platforms: Tata Capital Growth and Tata Capital Healthcare. These subsidiaries focus respectively on growth capital investments and healthcare sector investments, managing dedicated funds in their sectors as part of Tata Capital’s diversified financial services portfolio.
Meanwhile, Accel-backed Bluestone Jewellery has made changes to its IPO plans, reducing the size of its proposed IPO. This move could potentially lead to paper losses for several investors. The exact new size of Bluestone Jewellery's IPO is not specified at this time.
Another notable development is the $30-million Series C round led by Playbook Partners for Renee Cosmetics. The valuation of Renee Cosmetics during this round remains at $30 million.
As for Tata Capital, its valuation stands at $16 billion, as discussed prior to its proposed IPO. Tata Sons, the holding company of the Tata Group, has backed Tata Capital in this endeavour. If the IPO happens, it could potentially yield a significant return, known as a "neat harvest." However, it is important to note that the proposed IPO of Tata Capital is still pending.
The planned Initial Public Offering (IPO) by Tata Capital in September 2025 is primarily aimed at augmenting its Tier-I capital base, which will support future lending operations and growth in the competitive Non-Banking Financial Company (NBFC) sector.
The freshly raised capital will also be used to comply with the stricter regulatory oversight and higher capital requirements imposed by the Reserve Bank of India's (RBI) Scale-Based Regulation (SBR) framework, following Tata Capital's classification as an Upper Layer Non-Banking Financial Company (NBFC) in September 2022.
