Tata Capital Eyes $11 Billion Valuation with IPO, Potentially India’s Largest of the Year

Tata Group is seeking a valuation of up to $11 billion for its financial services arm, Tata Capital Ltd., through an initial public offering (IPO). The offering aims to raise approximately $2 billion, potentially making it India’s largest IPO of 2025. Sources indicate that while plans are progressing, details may evolve in the coming weeks.

Board Approval for IPO and Share Sale

• IPO Structure: The listing will include up to 230 million shares.
• Offer for Sale (OFS): Existing shareholders will have the opportunity to divest their equity.
• Rights Issue: Tata Capital has also announced a ₹15.04 billion ($172 million) rights issue to enhance its capital base and ensure financial stability.

India’s IPO Market Shows Resilience

Despite market volatility, India’s IPO segment remains strong. Several high-profile firms are preparing public listings:

• LG Electronics India is considering an IPO worth $1.5 billion.
• Prudential Plc’s Indian unit is working with investment banks for a $1 billion listing.
• Hyundai Motor India Ltd. made history last year with a $3.3 billion IPO, setting a benchmark for the market.

Tata Capital’s Role in the Indian Financial Ecosystem

• As a leading NBFC (non-banking financial company), Tata Capital operates as a shadow bank, catering to individuals and businesses with limited access to traditional banking services.
• Headquartered in Mumbai, the company has a nationwide presence with over 900 branches, supporting financial inclusion across India.

Impact of the IPO on Tata Capital and the Market

• A successful IPO will significantly strengthen Tata Capital’s financial position.
• The offering aligns with Tata Group’s strategy to expand its financial services footprint.
• This IPO has the potential to reshape India’s financial services industry, marking a major milestone in Tata Capital’s growth journey.

While the final valuation and fundraising figures may change, Tata Capital’s IPO is set to be a landmark event in the Indian equity market.