Tata Capital IPO: Safe bet or risky play on NBFC margins?

Investors must weigh brand strength, scale against concerns around profitability, asset quality

- Mayur Bhalerao

Tata Capital Ltd is set to launch its ₹15,511-crore initial public offering (IPO) on Monday as the financial services arm of the Tata group bets on its marquee parentage and stellar growth to make a successful market debut.

The IPO, the fourth-largest in India, opens on Monday and will remain open until Wednesday. The company has priced the offer at ₹310-326 per share, comprising a fresh issue of₹6,846 crore and an offer for sale worth ₹8,666 crore.

The NBFC will channel the proceeds to strengthen the company's tier-I capital or risk buffer for future lending. Growth push

Founded in 2007, Tata Capital had 7.3 million customers as of June, offering products across the retail, small and medium enterprises (SME), corporate and entrepreneur segments.

Retail loans rose to 61.3% of its portfolio in QIFY26, up from 56.7% in FY23. SME lending declined from 32.6% in FY23 to 26.2% in FY25, while corporate lending climbed modestly to 12.5%.

The loan book expanded to ₹2.33 trillion by March, clocking 37.3% compounded annual growth rate (CAGR) over FY23-FY25-the fastest among large NBFCs.