Tata Capital's IPO Surge: Milestone Move in Financial Sector

Tata Capital has unveiled a remarkable 31% increase in its profit after tax, reaching Rs 1,000 crore for the quarter ending March 2025. This growth comes alongside a striking rise in revenue to Rs 7,478 crore, a 50% leap from the previous year's Rs 4,998 crore, according to the company's recent regulatory filing.

As part of its strategy to meet Reserve Bank of India's requirements, the financial services arm of the Tata Group has filed for an initial public offering valued at approximately USD 2 billion. Sources suggest that this IPO could set a new record as the largest initial share sale in India's financial sector.

The upcoming IPO, already approved by the board, includes issuing new equity shares and an offer for sale by existing shareholders. Tata Capital's parent company, Tata Sons, currently holds a 92.83% stake, and the move marks a significant milestone following Tata Technologies' market debut in 2023.

(With inputs from agencies.)