Tata Capital Ltd. is aiming for a valuation of up to $11 billion in what could be India’s largest initial public offering (IPO) this year, according to sources familiar with the matter. The financial services arm of Tata Group is expected to raise as much as $2 billion through the public offering.
The company’s board recently approved the listing of up to 230 million shares, along with an offer for sale by existing shareholders. Additionally, Tata Capital announced a rights issue worth ₹15.04 billion ($172 million).
While deliberations are ongoing and details may change, Tata Group has yet to make an official statement regarding the IPO.
India’s Booming IPO Market
Despite market fluctuations, India’s IPO landscape remains strong. LG Electronics India is reportedly planning an IPO that could raise $1.5 billion, while Prudential Plc is working with banks for a potential $1 billion listing of its Indian unit. Last year, Hyundai Motor India Ltd. set a record with a $3.3 billion IPO.
Tata Capital: A Key Player in NBFC Sector
Tata Capital operates as a non-banking financial company (NBFC), providing credit services to individuals and businesses that may have limited access to traditional banks. With over 900 branches across India, the Mumbai-based firm plays a crucial role in India’s financial ecosystem.
IPO Advisory and Future Prospects
According to a Moneycontrol report from December 24, 2024, Tata Capital has already engaged Cyril Amarchand Mangaldas and Kotak Mahindra Capital as advisors for the IPO. The offering is expected to be a mix of primary and secondary share issuances, targeting a total fundraising of ₹15,000 crore+.
As Tata Capital prepares for this milestone listing, the Indian financial sector eagerly watches what could be a game-changing IPO.
