Tata Capital eyes valuation of $16.5B for its $1.85B IPO
What's the story
Tata Capital, the financial services arm of Tata Group, is gearing up for a major initial public offering (IPO) in early October. The firm is targeting a post-money equity valuation of around $16.5 billion (approximately ₹1,46,000 crore) for the listing. This comes after roadshows and discussions with stakeholders, Moneycontrol reported citing sources familiar with the matter.
Launch details
IPO likely to open for public subscription on October 6
The anchor portion of Tata Capital's IPO is likely to be on October 3, with public subscription starting between October 6 and 8. The total size of the IPO (fresh issue of shares plus an offer for sale by Tata Sons and International Finance Corporation) is pegged at around $1.85 billion (nearly ₹16,400 crore). LIC is expected to be a major investor in this issue.
Fund utilization
Proceeds to strengthen Tier-I capital base
The proceeds from Tata Capital's IPO will be used to strengthen the company's Tier-I capital base for future capital requirements, including onward lending. The company has appointed Cyril Amarchand Mangaldas, AZB & Partners, and Latham & Watkins as its legal counsels for this mega issue. Despite challenging market conditions for NBFC listings recently, Tata Capital remains optimistic about its upcoming IPO.
Business overview
Tata Capital's lending operations began in 2007
Tata Capital, an upper layer NBFC as per RBI, has served seven million customers since its lending operations began in 2007. The company offers a wide range of 25+ lending products to salaried and self-employed individuals, entrepreneurs, small businesses, SMEs, and corporates. It also distributes third-party products such as insurance and credit cards. As of March 31, 2025, retail and SME customers accounted for 88.5% of Tata Capital's total gross loans with a pan-India distribution network of nearly 1,500 branches.