Tata Capital targets $11 billion valuation in India’s biggest IPO: Report

Tata Group is aiming for a valuation of up to $11 billion for its financial services arm, Tata Capital, in what could be India’s largest initial public offering (IPO) of the year, Bloomberg reported, citing sources.

The IPO could raise as much as $2 billion, with the company’s board recently approving the listing of up to 230 million shares alongside an offer for sale by existing shareholders. Additionally, Tata Capital has announced a rights issue of up to ₹1,504 crore ($172 million).  

Business Today was unable to verify the development independently. 

Tata Capital, a non-banking financial company (NBFC), specialises in providing loans and financial services to customers with limited access to traditional banking. With over 900 branches across India, it plays a crucial role in expanding financial inclusion.  

Despite market fluctuations, India’s IPO market remains active, with several major firms preparing to go public. LG Electronics India is planning a $1.5 billion IPO, while Prudential Plc has hired banks to explore a potential $1 billion listing of its Indian unit. Last year, Hyundai Motor India Ltd successfully raised $3.3 billion in its IPO.  

While India’s IPO market has seen robust investor interest in recent years, a sustained sell-off in the equity market has dampened sentiment. February’s weak subscription numbers indicate that investors, particularly retail buyers, are becoming more cautious amid market volatility. Many companies that raised funds last month experienced lukewarm demand, with small and medium enterprise (SME) issues seeing notably lower retail participation.