Tata Capital has approved an initial public offering to issue 230 million new shares, while current shareholders will sell their stakes through the offer for sale method. The financial services arm of India's $165 billion Tata Group was mandated to list by September this year, according to central bank norms for so-called "upper layer" non-banking financial companies.

It will be the first Tata Group company to go for an IPO since Tata Technologies in November 2023. Tata Sons is its top shareholder, with a 92.8% stake as of March 2024. The company separately also approved a 15.04 billion rupees ($173 million) rights issue on Tuesday.