Tata Capital Limited (TCL), a systemically important non-deposit taking NBFC, maintains a leveraged capital structure typical for its sector, with a significant portion funded by debt to support lending operations. The details below are primarily consolidated figures as of March 31, 2025 (from the FY 2024-25 Annual Report), reflecting the merger of Tata Motors Finance Limited (effective May 8, 2025, with appointed date April 1, 2024). Figures are in ₹ crore unless stated otherwise. For context, as of September 30, 2024, consolidated tangible net worth was ₹25,480 crore with a gearing ratio of 6.35 times.
Key Timeline
- Subscription Opens: October 6, 2025
- Subscription Closes: October 8, 2025
- Listing Date: October 13, 2025 (on BSE and NSE)
Price Band and Investment Details
- Price Band: ₹310 to ₹326 per share (priced below the industry average and a 56% discount from the last unlisted share price to attract investors)
- Lot Size: 46 shares
- Minimum Investment: ₹14,260 (for retail investors, based on the lower end of the price band)
| Component | Amount (₹ crore) | Key Notes |
|---|---|---|
| Authorized Share Capital | 14,000 | Includes 775 crore equity shares (₹7,750 crore at ₹10 each), plus preference shares (₹6,250 crore total). |
| Issued, Subscribed, and Paid-up Equity Share Capital | 3,762.44 | 376.24 crore shares of ₹10 each; increased due to rights issue and merger allotments. |
| Paid-up Preference Share Capital | 330.52 | Cumulative Redeemable Preference Shares (CRPS) of ₹1,000 each; treated as subordinated liabilities for regulatory purposes. |
| Instruments Entirely Equity in Nature | 1,808.00 | Perpetual instruments under Ind AS 32. |
| Total Other Equity (Reserves and Surplus) | 23,458.61 | Includes securities premium (₹5,074.29), special reserves (₹4,348.23), retained earnings (₹14,430.35), and OCI components (e.g., fair value changes on equity instruments: -₹892.31). |
| Total Shareholders’ Funds / Net Worth | 27,221.05 | Attributable to owners; total equity including non-controlling interest: ₹28,399.88. Regulatory net worth (Tier I + Tier II): ₹28,779.90. |
Debt / Borrowings
Total borrowings stood at ₹208,414.93 crore, diversified across instruments to manage liquidity and cost. Approximately 58% sourced from top 10 counterparties. Maturity profile: 29% due within 1 year, 67% in 1-5 years, and 4% beyond 5 years.
| Category | Amount (₹ crore) | Composition Breakdown (% of Total Debt as of March 31, 2024) | Key Notes |
|---|---|---|---|
| Debt Securities | 80,141.57 | NCDs (secured: ~71%, unsecured: ~3%); Commercial Paper (~7%); Medium-Term Notes (~2%) | Includes public and private placements; average maturity up to 34 years. |
| Other Borrowings | 118,620.40 | Bank loans (~46%); External Commercial Borrowings (~7%); Inter-Corporate Deposits (negligible) | Term loans (secured from banks/NHB: ~70%); demand loans/working capital (~5%). |
| Subordinated Liabilities | 9,652.96 | Non-convertible debentures (~85%); Perpetual debentures (~12%); CRPS (~3%) | Tier-II eligible; enhances CRAR. |
| Total Borrowings / Debt | 208,414.93 | Bank loans: 46%; NCDs: 34%; CP: 7%; Subordinated: 6%; ECBs: 7% | At amortized cost; fair value: ₹208,689.13. Excludes trade payables and leases. |
Key Ratios
| Ratio | Value (Consolidated) | Notes |
|---|---|---|
| Debt-Equity Ratio | ~6.08x | Total debt ÷ total equity; increased post-merger from ~5.12x as of prior year. Standalone: ~5.24x. |
| Gearing Ratio | ~6.08x | Debt ÷ equity; expected to remain 5.5-6.5x medium-term. As of Sep 30, 2024: 6.35x. |
| Capital Adequacy Ratio (CRAR) | 16.91% | Tier I: 12.80%; Tier II: 4.11%; on risk-weighted assets of ~₹170,000 crore. Standalone as of Sep 2024: 17%. |
| Interest Coverage Ratio | 1.42x (H1 FY25) | Down slightly from 1.46x in FY24, indicating ability to service interest. |
Detailed Research Note Attached below:
Tata_Capital_Ltd_IPO_Note_October_03_2025_Subscribe