Market Performance
Tata Capital, one of India’s leading non-banking financial companies (NBFCs), has opened its maiden IPO for subscription, attracting attention from investors for its combination of steady profitability and moderate pricing. The public issue is valued at Rs 15,512 crore, with a price band set between Rs 310 and Rs 326 per share. At the upper end of the band, the company is valued at around Rs 1.38 lakh crore.
The IPO comprises 47.58 crore shares, including:
- 21 crore fresh equity shares
- 26.58 crore shares offered for sale
This marks a significant step for Tata Capital as it enters the public market, providing investors a window into its operational performance and growth trajectory.
Company Overview
Tata Capital has positioned itself as a well-structured NBFC with balanced financial metrics. Key highlights include:
- Gross loan book: Rs 2.26 lakh crore
- Revenue from operations FY25: Rs 28,313 crore
- Interest income FY25: Rs 25,720 crore
- Net interest income (NII) FY25: Rs 10,690 crore
- Profit after tax FY25: Rs 3,665 crore
- Disbursements FY25: Rs 1.42 lakh crore
The company operates 1,496 branches across India and employs nearly 29,400 people, offering a robust operational network while remaining smaller in scale compared to some of its listed NBFC peers.
Financial Strength and Asset Quality
Tata Capital’s IPO details reflect a solid financial structure and steady asset quality:
- Trailing Book Value multiple: 4.1x
- Net NPA (NNPA): 0.8%
- Return on equity (RoE): 12.6%
- Net Interest Margin (NIM): 5.2%
- Cost of funding: 7.8%
These figures underscore the company’s ability to maintain strong operational performance while ensuring asset stability, an important factor for a growing NBFC in India’s dynamic financial sector.
Operational Highlights
The company has shown healthy growth in key operational metrics:
- AUM CAGR (FY23-25): 37.3%
- Pre-Provision Operating Profit (PPOP) CAGR: 33.2%
These numbers indicate consistent expansion and operational efficiency, positioning Tata Capital as a significant player in the NBFC segment.
Summary of IPO and Company Metrics
- IPO size: Rs 15,512 crore
- Price band: Rs 310 – Rs 326 per share
- Valuation at upper band: Rs 1.38 lakh crore
- Fresh shares: 21 crore
- Offer for sale: 26.58 crore
- Gross loan book: Rs 2.26 lakh crore
- Revenue FY25: Rs 28,313 crore
- Profit after tax FY25: Rs 3,665 crore
- Branch network: 1,496 branches
- Employees: ~29,400
Tata Capital’s IPO provides a clear picture of its scale, financial performance, and growth potential, marking a key milestone in its journey as a full-service financial institution. With a strong operational foundation and robust asset quality, the company is set to strengthen its position in India’s NBFC landscape.
