According to Bloomberg, the Tata Group wants to list IPO of its financial services division, Tata Capital, at a valuation of $11 billion in what might be the biggest initial public offering (IPO) in India in 2025.
With the company’s board approving the listing of 230 million shares, including an offer for sale by current shareholders, the initial public offering (IPO) has the potential to raise up to $2 billion.
Tata Group To Sell Its Financial Division Tata Capital
Additionally, Tata Capital announced a ₹1,504 crore ($172 million) rights issue.
Customers with limited access to traditional banking are the target of Tata Capital, a non-banking financial company (NBFC) that offers loans and financial services.
With more than 900 locations throughout India, the business is a major force in financial inclusion.
India’s IPO market is still thriving, with a number of significant companies getting ready to go public, despite market volatility.
Prudential Plc is considering a $1 billion listing for its Indian division, while LG Electronics India is preparing a $1.5 billion IPO.
Hyundai Motor India Ltd. raised $3.3 billion through its initial public offering (IPO) last year.
Investor caution has been tempered by a prolonged sell-off in the equity market, despite recent IPO enthusiasm.
Weak IPO subscription numbers in February suggest that, in the face of market volatility, retail buyers are growing more cautious.
Demand was lukewarm for many businesses that raised money in February, particularly in the SME sector where retail participation sharply decreased.
Tata Capital IPO Approved Recently
Recently, Tata Capital has approved plans for an initial public offering (IPO) consisting of a fresh issue of 23 crore equity shares and an offer-for-sale by existing shareholders. While specific details on the IPO remain undisclosed, this marks a significant development for the company, which has been a key player in India’s financial services sector since its establishment in 2007.
Ahead of the IPO, Tata Capital’s board has decided to issue shares worth Rs 1,504 crore on a rights basis to its existing shareholders. This IPO would be the first by a Tata Group company since a major listing in 2023. The move aligns with the Reserve Bank of India’s mandate requiring ‘upper layer’ non-banking financial companies (NBFCs) to go public within three years of notification, which sets a deadline of September 2025.
