India is at a pivotal moment in its industrial journey. As the world races to curb emissions and embrace sustainable practices, green steel has emerged as a vital solution for decarbonizing heavy industry. With the steel sector contributing around 7% of global CO2 emissions, India’s move toward green steel is both a climate imperative and an economic opportunity.
What is Green Steel?
Green steel refers to steel produced through processes that drastically reduce carbon emissions compared to conventional blast furnace methods. Traditional steelmaking relies on coal and other fossil fuels, while green steel integrates cleaner technologies such as:
Electric Arc Furnaces (EAFs) powered by renewable energy
Direct Reduced Iron (DRI) using green hydrogen instead of natural gas or coal
Carbon Capture, Utilization, and Storage (CCUS) technologies
Scrap recycling to minimize raw material extraction
Green Steel Meaning in the Modern Economy
The green steel meaning extends beyond cleaner production. It signals a broader shift to sustainable value chains, ESG-aligned investments, and carbon-neutral exports. Driven by climate commitments, consumer demand, and global regulations, green steel is fast becoming a benchmark for responsible manufacturing.
India Green Steel Taxonomy: Defining the Path Forward
To guide the transition, India introduced the India Green Steel Taxonomy, a classification framework based on carbon intensity. It ranks steel production from 1-star (high emissions) to 5-star (ultra-low emissions) and features:
Emission Benchmark: Steel emitting less than 2.2 tonnes of CO2 per tonne qualifies as green
Technology-Neutral Approach: Focuses on outcomes, not production routes
Global Compatibility: Aligns with the EU’s Carbon Border Adjustment Mechanism (CBAM)
This green steel taxonomy empowers investors, regulators, and producers to accelerate adoption with clear standards.
India Green Steel ManufacturingAdvantage
India, the world’s second-largest steel producer, already derives over 54% of its output from EAF and IF technologies—a natural fit for green upgrades. The India green steel industry is projected to grow from USD 24.8 billion in 2024 to USD 27.8 billion by 2030, with a 6.8% CAGR.
Key Drivers:
Rising global premiums for certified green steel (€200–300/tonne)
CBAM readiness for EU exports from 2026
National Green Hydrogen Mission and renewable energy expansion
Demand for low-carbon supply chains from OEMs and global brands
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Green Steel Manufacturing Companies
Several Indian companies are pioneering green steel production through innovation, investment, and international alignment.
Kalyani Group / Saarloha
Launched KALYANI FeRRESTA™, India’s first branded green steel
Uses EAFs and 100% renewable energy
Serves auto, aerospace, defense, and renewables sectors
The group (Kalyani) is likely to scale up Saarloha’s FeRRESTA output, and Kalyani Steels can become a downstream channel for green alloy steel supply.
FeRRESTA™ launched in December 2022 — India’s first green steel brand, used in automotive, aerospace, defense, and renewable sectors
JSW Steel
Building green hydrogen plants and certified GreenPro products
Aims to abate 9+ MnT CO2 by 2030 through 100+ decarbonization initiatives
Operates NSL Green Steel Recycling Ltd for scrap-based circular economy
The company is recognized at COP28 as a Global Energy Transition Changemaker
Setting up 10 GW RE capacity to supply steelmaking operations by 2030
The group has established NSL Green Steel Recycling Ltd to focus on scrap-based steel and circular economy
Shyam Metalics (SMEL)
Scaling production to 14.45 MTPA with renewable-powered captive DRI
Waste Heat Recovery and solar expansion to 109 MW
Targets EV battery market through aluminum foil exports
Tata Steel
Committed to net-zero by 2045
Piloting hydrogen-based DRI and CCUS at Jamshedpur
1,036 MW renewable capacity by FY25
Operating in UK/EU with EAF and DRI conversions; brand: Zeremis® Green Steel
Tata Steel’s long-term decarbonization and green steel production approach includes:
In India
Modular scrap-based EAF plants: First at Ludhiana; more being explored for scrap-rich regions
Hydrogen Steelmaking: Successful large-scale hydrogen injection at Jamshedpur (E Blast Furnace)
Carbon Capture: Operating a 5 TPD CO₂ capture unit at Jamshedpur
Renewable Energy: 1,036 MW captive RE capacity by FY25; supplies Ludhiana EAF and others
In Europe
Tata Steel Nederland:
Transitioning IJmuiden plant to DRI (initially gas, later green hydrogen) + EAF by 2030
Plans to use 30% scrap in future production
Zeremis® Green Steel Brand:
To deliver steel with 90–100% CO₂ footprint reduction for auto and infra segments
Jindal Steel & Power (JSPL)
Developed coal-gasification DRI and green hydrogen facility
First Indian firm to receive EPD for low-carbon steel
Captures 2,000 TPD CO2 at Angul and converts to biofuels and chemicals
Developing 2,800 MW hybrid renewable capacity (solar + wind) via Jindal Renewable Power to meet future steel plant energy demands
Green Steel Taxonomy in Practice: Export & Compliance Readiness
Company
Core Tech
Key Projects (by 2030)
CBAM/Export Ready
Tata Steel
Hydrogen BF, EAF, CCUS
3.2 MTPA EAF (UK), DRI EAF (Netherlands)
High
JSW Steel
Scrap EAF, RE, hydrogen pilot
Green steel plant, 10 GW RE by 2030
High
JSPL
Coal-gas DRI, CO2 capture
2 MTPA hydrogen DRI, 2.8 GW RE planned
High
Shyam Metalics
WHRB, captive DRI, solar
Stainless EAF, battery foil exports
Medium
Kalyani Steels
EAF, FeRRESTA™ pilot
Expanding to KSL downstream channels
Medium
Overcoming the Challenges
Despite clear momentum, India faces barriers to full-scale green steel adoption:
High costs for green hydrogen and RE integration
Limited hydrogen infrastructure
Lack of standardized green certification and traceability
Green steel pricing premium may hinder domestic adoption
Green Steel as a Strategic Catalyst
India’s policy push—PLI schemes, National Hydrogen Mission, and 500 GW RE target—sets the stage. Meanwhile, market dynamics and ESG capital are driving urgency.
Key enablers going forward:
Green steel hubs with shared RE and hydrogen infra
Public procurement mandates to stimulate demand
Integration with carbon markets for monetizing green credentials
International partnerships for tech and finance transfer
Final words on India Green Steel Industry
The rise of green steel is more than just a climate response. It’s a once-in-a-generation chance for India to rewire its industrial base around sustainability. With technological readiness, abundant renewables, and global market access, India can shift from being a cost leader to a carbon-conscious steel powerhouse.
From Tata Steel to JSPL, Indian firms are already showing that green steel is not just feasible—it’s scalable. As policy, markets, and innovation align, India is primed to lead the global green steel movement. The future of Indian steel is not only strong—it’s sustainable, smart, and unmistakably green.
The Cabinet approves the PM Dhan-Dhaanya Krishi Yojana, a new scheme aimed at boosting farming in 100 low-performing agricultural districts across India.
The scheme commences in FY26 and will run for six years, with an annual budget of Rs 24,000 crore, covering 1.7 crore farmers.
Thirty-six existing schemes from 11 ministries will be merged to ensure better coordination and impact at the district level.
At least one district from each state will be selected, focusing on areas with low farm output, limited crop diversity, and poor access to credit.
Focus areas include improving productivity, promoting crop diversification, constructing storage facilities, expanding irrigation systems, and enhancing access to credit.
Modelled after the Aspirational District Programme, the scheme will also feature a mobile app to provide farmers with key updates and guidance.
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In a financial world where unicorns dazzle and digital platforms disrupt, it’s rare for an old lion to step forward with such quiet confidence. Yet this year, Tata Capital, the financial services arm of the 156-year-old Tata Group, is doing just that — preparing to make its public debut with a ₹17,200 crore (approx. $2 billion) Initial Public Offering (IPO).
If all goes according to plan, this could be India’s biggest IPO of 2025 — and one of its most consequential in a decade.
But the real question is not whether the Tata Capital IPO will make headlines.
It already has.
The real question is: Should you invest in it?
A Titan Steps into the Spotlight
Tata Capital, until now a powerful but privately held arm of India’s most respected business house, is set to join the stock market club — and its arrival is nothing short of seismic. Having built a ₹2.2 lakh crore ($26.4 billion) loan book and a digital-first lending ecosystem, it straddles the old and new worlds with rare poise.
It’s not just another NBFC (non-banking financial company); it’s the financial soul of the Tata Group — embedded in everything from retail lending to green infrastructure finance.
Its IPO is more than a capital raise. It’s a declaration of intent: India’s financial future will be built by those who understand both trust and technology.
Tata Capital IPO Details: Unfolding a ₹17,200 Crore Play
SEBI, India’s securities regulator, has given the green light for Tata Capital’s confidential DRHP. While the exact Tata Capital IPO date hasn’t been formally announced, sources suggest an August 2025 listing.
IPO Size: ₹17,200 crore
Fresh Issue: A small portion — likely to strengthen regulatory capital
Offer for Sale (OFS): Majority stake sale by Tata Sons (the promoter)
If priced right, it will likely command a P/E multiple of 25–28x and P/B of 8–10x, according to analysts tracking the grey market.
The India Context: Why This IPO Matters
India’s capital market ecosystem has undergone a silent revolution. Over the past five years:
Retail investors have exploded from 30 million to 110 million.
Trading volumes have surged, driven by mobile-first platforms like Zerodha and Groww.
SEBI reforms, T+1 settlements, and digital KYC have made investing more democratic than ever.
And yet, despite this digital wave, there’s been a void in the middle. The fintechs are nimble, but shallow. The public sector banks are wide-reaching, but slow. Private NBFCs are often ambitious, but capital-starved.
Tata Capital sits right at the intersection of scale, trust, and speed.
This IPO, then, is not just about a company listing — it’s about an institution joining the race to define India’s financial future.
Business Model of TATA Capital IPO
Tata Capital operates across the lending spectrum:
Retail Loans: Personal, home, auto, education
SME Lending: Working capital, equipment finance
Commercial & Infra Finance: Especially renewable energy
Wealth Management: Through Tata Capital Housing and Securities
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What makes TATA capital IPO share price stand apart?
Digital Muscle: 98% customer onboarding is fully digital.
AI-Powered Decisions: Loan origination, risk scoring, customer servicing — all powered by algorithms.
Brand Power: With Shubman Gill as its ambassador and Tata’s legacy backing it, the customer recall is enormous.
And with 1,496 branches nationwide, it is not just online-first. It is omnichannel-first — and that could be a secret weapon in underbanked India.
Focusing on Green Finance & Sustainability
Tata Capital isn’t just another lender — it’s a strategic capital provider for India’s energy transition. Through its CleanTech vertical:
It has financed 17+ GW of renewable energy projects.
Helped avert 27 million tons of CO₂ emissions (as of FY24).
It aims to become a market leader in green bonds and ESG-aligned lending.
Financial Performance TATA capital
Tata Capital’s FY25 numbers are solid — not outrageous like a startup, but reassuring like a bank you’d trust.
Metric
FY24
FY25
Book Size (AUM)
₹1.58 lakh Cr
₹2.22 lakh Cr
PAT
₹3,150 Cr
₹3,665 Cr
ROE
17.6%
~10.6% (due to capital infusion & provisioning)
NPA (Gross)
~1.7%
~2.3%
Customer Base
4.5 million
7+ million
Yes, NPAs have ticked up, but that’s largely due to aggressive SME expansion and merger with Tata Motors Finance — not mismanagement.
TATA capital IPO Valuation & Peer Comparison
Compared to listed peers:
Company
P/E
P/B
ROE
Bajaj Finance
35x
6x
11.4%
L&T Finance
18x
2x
11%
Muthoot Finance
20x
2.5x
13%
Tata Capital (Est.)
~28x
~8–10x
~11%
The valuation premium Tata Capital may command is justified — for its brand equity, distribution scale, digital stack, and parentage.
Scenario-Based Tata Capital IPO Valuation
To help investors visualize upside/downside potential, here’s a Bull/Base/Bear scenario analysis for Tata Capital’s valuation and expected returns by FY27 (2 years post-listing):
Scenario
AUM CAGR
PAT FY27 (₹ Cr)
P/E
Valuation (₹ Cr)
IRR (from IPO @ ₹60K Cr)
Bull
25%
6,200
28x
₹1.74 lakh Cr
~65% CAGR
Base
18%
5,000
20x
₹1.00 lakh Cr
~28% CAGR
Bear
12%
3,700
14x
₹51,800 Cr
~–7% (loss)
Why the TATA capital IPO Is a Turning Point
The proceeds from the IPO aren’t just going into a bank account. Tata Capital plans to:
Strengthen capital adequacy for future growth
Expand its green lending portfolio (over 17 GW of clean projects financed)
Invest further in AI, automation, and underwriting engines
Possibly look at inorganic acquisitions in wealth-tech or fintech
This is a company preparing not just for a stock listing — but a financial marathon.
The Risks factors in Tata capital financial services limited IPO
Let’s not paint too rosy a picture.
Regulatory Headwinds: RBI could tighten NBFC norms, raising capital requirements or provisioning standards.
Asset Quality Pressure: Aggressive SME & affordable housing play could lead to delinquencies.
Interest Rate Cycles: Margin compression is a real threat if borrowing costs rise.
Tech Disruption: As fintechs get bolder, Tata Capital must constantly innovate to stay relevant.
But unlike flashy tech IPOs, Tata Capital’s risks are measured and known — not speculative.
Investor Sentiment: Red Hot
Unlisted shares of Tata Capital are already trading at approximately ₹900 and ₹1,050 in the grey market, implying a valuation well above ₹1 lakh crore. Institutions are circling. FPIs are interested. Mutual funds are expected to pile in as anchor investors.
Over all, broader market mood is also bullish and many IPOs are already in the market that are oversubscribed and listed in premium in the exchanges.
With the Tata name and the market mood aligning, over subscription is all but guaranteed.
Should You Invest in TATA Capital IPO?
Let’s break it down to understand if one can consider investing in TATA Capital IPO share, both pros and cons.
Invest If:
You want to own a long-term compounder with brand strength
You missed the Bajaj Finance ride and are looking for the next best thing
You believe in India’s consumption, credit, and capital market growth stories
Hold Back If:
The IPO is priced at absurd P/E > 35x
Broader markets are in correction mode
You’re purely chasing short-term listing gains
The Bigger Picture of Tata capital financial services limited IPO
Tata Capital’s IPO is more than just a ₹17,200 crore issue. It marks a generational moment — the passing of the baton from legacy to public.
It’s the signal that India’s financial backbone is no longer confined to the old walls of Bombay House. It’s ready to walk Wall Street, Bay Street, and Dalal Street — all at once.
As India’s middle-class surges, as credit demand explodes, as savings move from FDs to funds — Tata Capital is not just joining the race. It’s here to lead it.
Tata capital IPO News
Tata capital IPO has been in news since it has applied for IPO. Tata capital filed confidential IPO documents or DRHP with market regulator SEBI for IPO processing. Though TATA capital is not the first company to file confidential IPO papers, it is one of the companies to do it. Tata Play (formerly Tata Sky) a company of tata group was the first Indian company to file confidential IPO papers in India.
Disclosure: The author is not a SEBI registered research analyst and does not hold any stake in Tata Capital. Discuss with your financial analyst before investing in the IPO.
Nvidia CEO Jensen Huang has sold shares of the chipmaking giant worth approximately $36.4 million, further trimming his holdings in the company he co-founded. The move comes as Huang’s soaring net worth places him in close proximity to legendary investor Warren Buffett in global wealth rankings.
According to CNBC reports, the latest transaction involved 225,000 shares and was part of a broader trading plan adopted in March, which allows Huang to sell up to six million shares of Nvidia through the end of 2025.
He had earlier sold a separate tranche in June worth around $15 million under the same arrangement.
Last year, Huang had divested nearly $700 million worth of shares under a similar prearranged plan. Following the most recent disclosure, Nvidia shares rose by about 1% in Friday trading, CNBC reported.
The tech executive’s wealth has surged alongside Nvidia’s meteoric rise as a leader in the artificial intelligence hardware space. The company’s GPUs have become indispensable for training and running large language models, fueling massive demand from both enterprises and investors.
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As per CNBC, Huang’s net worth has jumped by over $29 billion just in 2025 so far, marking a gain of more than 25%. Bloomberg’s Billionaires Index estimates his fortune at $143 billion, placing him nearly neck and neck with Berkshire Hathaway chairman Warren Buffett, who stands at $144 billion.The company itself has hit record-breaking milestones in recent months. CNBC noted that Nvidia became the first U.S. firm to cross a $4 trillion market capitalization earlier this week, surpassing tech giants Microsoft and Apple in the process.Despite his ongoing stock sales, Huang continues to hold over 858 million Nvidia shares, both directly and indirectly through various partnerships and trusts.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
