Tata Group is preparing to take its financial services arm, Tata Capital, public, aiming for a valuation of up to $11 billion in what could be India’s largest initial public offering (IPO) of the year. The report, published by Bloomberg, suggests that Tata Capital’s IPO could raise as much as $2 billion.
IPO Details and Fundraising Plans
The board of Tata Capital has recently approved the listing of up to 230 million shares, along with an offer for sale (OFS) by existing shareholders. To further strengthen its financial position, the company has also announced a rights issue worth ₹1,504 crore ($172 million).
About Tata Capital
Tata Capital is a non-banking financial company (NBFC) that provides loans and financial services, especially to customers with limited access to traditional banking. The company has a strong presence across India, operating over 900 branches, and plays a key role in expanding financial inclusion.
India’s IPO Market and Investor Sentiment
Despite market fluctuations, India’s IPO market remains active, with several big companies planning public offerings. LG Electronics India is preparing for a $1.5 billion IPO, and Prudential Plc is exploring a $1 billion listing of its Indian unit. In 2024, Hyundai Motor India Ltd successfully raised $3.3 billion through its IPO.
However, recent trends show that investor sentiment is turning cautious. A sustained sell-off in the equity market has led to weaker demand for IPOs, especially among retail investors. In February, many companies that went public struggled to attract strong interest, with small and medium enterprises (SMEs) seeing notably low participation from retail buyers.
As Tata Capital moves ahead with its IPO plans, market analysts will closely watch how investor confidence shapes the success of India’s biggest IPO of the year.
