Tata Group is setting its sights on an ambitious valuation of up to $11 billion for its financial services arm, Tata Capital Ltd., as it gears up for what could be India’s most significant initial public offering (IPO) of the year. According to sources familiar with the matter, the IPO is expected to raise as much as $2 billion, making it one of the largest public listings in the country’s financial sector. While discussions are still ongoing and the final valuation and deal size may be subject to change, this move highlights Tata Group’s expanding influence in the financial services space. So far, Tata representatives have not provided official comments on the development.
Tata Capital’s board took a crucial step last week by approving the listing of up to 230 million shares, including an offer for sale by existing shareholders. This decision marks a key milestone in the company’s journey toward going public. Additionally, the company announced a rights issue worth Rs 15.04 billion ($172 million) to further bolster its financial position ahead of the listing. The fundraising move is expected to support Tata Capital’s growth ambitions, allowing it to enhance its lending portfolio and expand its presence in India's highly competitive financial services market.
Despite ongoing market fluctuations, India’s IPO landscape has remained resilient, with several major companies preparing to enter the public market. LG Electronics India is reportedly planning to raise $1.5 billion through an IPO, while Prudential Plc has hired investment banks to explore a potential $1 billion IPO for its Indian subsidiary. Last year, Hyundai Motor India Ltd. successfully raised $3.3 billion in its IPO, one of the largest public offerings in the country’s history.
Tata Capital operates as a non-banking financial company (NBFC), offering a wide range of financial services, including loans, wealth management, and investment banking. The company primarily focuses on catering to individuals and businesses with limited access to traditional banking, making it a crucial player in India’s financial ecosystem. With a robust distribution network and a strong customer base, Tata Capital has expanded its footprint to over 900 branches across India, positioning itself as a leading financial services provider.
The decision to take Tata Capital public aligns with Tata Group’s broader strategy of unlocking value across its businesses and strengthening its position in the financial sector. By listing on the stock exchange, Tata Capital aims to tap into new growth opportunities, attract institutional investors, and enhance its ability to compete with other financial giants in India. The IPO will also provide an opportunity for existing shareholders to partially exit or monetize their holdings while bringing greater transparency and governance to the company.
If successful, Tata Capital’s IPO will mark a significant milestone for the Tata Group, further solidifying its standing as one of India’s most influential business conglomerates. The move also reflects the growing investor interest in India’s financial services sector, which has witnessed rapid expansion due to rising demand for credit, digital banking services, and wealth management solutions.
As Tata Capital moves closer to its public listing, analysts and investors will be closely watching developments related to pricing, demand from institutional buyers, and overall market sentiment. The IPO is expected to generate considerable interest, given the Tata brand's credibility, strong market presence, and the company’s potential for long-term growth in the financial sector.
