Risk Ratio
Tata Capital management says capital adequacy ratio to improve to 22% after IPO
This story was originally published at 15:07 IST on 29 September 2025
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MUMBAI – Tata Capital Ltd.'s capital adequacy ratio will improve to 22%, from 16.6% as of Jun. 30, after the non-banking finance company raises money through its initial public offering, the management said at a press conference in Mumbai Monday. Tata Capital will deploy more funds for lending in tandem with the higher capital adequacy ratio, it said.
The company does not expect much change in its funding sources in the future. It expects a minor change of only 2-3 percentage points in funding mix going forward. As of Jun. 30, the company's funding source mix was nearly 53% from banks, 36% from non-convertible debentures and other debt instruments, and 6.5% from commercial paper.
The management does not expect any significant delay in listing. "I don't think so six days here or seven days there makes a difference. We are almost there in terms of our deadline," Managing Director Rajiv Sabharwal said. The public offer is set to open for subscription Oct. 6 and media reports suggest the company may be listed on the exchanges by Oct. 13.
On the pricing of the public offer--the company has set the price band at INR 310-INR 326 per equity share--the management said the feedback it had got had suggested that the offer should be priced higher. However, the company priced the IPO more modestly to attract a higher number of investors, which will benefit the company when it is being considered for inclusion in domestic and global indices, said Chairman Saurabh Agrawal.
The management expects its housing loan book to grow significantly over 1-2 years. It estimates the segment's loan book will cross INR 1.00 trillion in 18 months from INR 700.00 billion currently. End
Reported by Anshul Choudhary
Edited by Rajeev Pai
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