Bloomberg reports, Tata Capital Ltd. has opened subscriptions for India’s biggest public issue of the year, potentially raising up to 155 billion rupees ($1.7 billion).
The listing, which comes amid a surge in investor appetite and steady capital inflows into mutual funds, is expected to push India’s initial public offering market to new highs this month.
The financial services arm of Tata Group has priced its shares between 310 and 326 rupees, with trading expected to begin on October 13.
The offering’s timing reflects growing confidence that India’s equity markets can absorb large issues despite global volatility.
Tata Capital eyes strong investor participation
Tata Capital’s IPO marks a major milestone for the Tata Group’s expansion in the financial services sector. The company and its shareholders — including parent Tata Sons and International Finance Corp. — are offering up to 475.8 million new and existing shares, according to its prospectus. As of Monday morning in Mumbai, the issue had received bids for 9% of the total shares on offer, based on data from the BSE.
The company raised 46.4 billion rupees ($523 million) last week through anchor investors, with participation from Morgan Stanley, Goldman Sachs, Nomura Holdings, and Life Insurance Corporation of India. This strong anchor book subscription signals institutional confidence in the group’s financial arm ahead of its debut.
Market set for record fundraising in October
Tata Capital’s listing coincides with a booming IPO calendar in India, with October expected to become a record-setting month for equity fundraising.
Following the Tata issue, LG Electronics’ Indian subsidiary will open a billion-dollar offering the very next day, adding to the momentum.
Combined proceeds from these and other offerings could exceed $5 billion this month, making it one of the most active periods for India’s capital markets in recent years.
Industry analysts attribute the surge to robust liquidity in domestic mutual funds, driven by systematic investment plans that channel steady monthly inflows into equities.
This has created “ample capacity to absorb supply,” according to Raghuram K of Uniqus Consultech, who noted that fund managers are increasingly confident about deploying capital into large offerings.
Tata Capital strengthens India’s shadow lending sector
Incorporated in 2007, Tata Capital offers a wide range of financial services spanning retail, corporate, and institutional clients. Its assets under management reached 2.33 trillion rupees as of June 2025, catering to a customer base of 73 million.
The company’s operations extend across consumer loans, housing finance, wealth management, and SME lending — positioning it as a leading non-bank financial company (NBFC) in India.
The IPO’s success would value Tata Capital at as much as 1.4 trillion rupees ($15.7 billion), more than double the market capitalisation of HDB Financial Services Ltd., which went public earlier this year.
The offering will also stand as the country’s largest since Hyundai Motor India’s $3.3 billion listing in 2024, underscoring the growing depth of India’s equity markets.
Investors eye stability amid global uncertainty
For investors, the Tata Capital IPO provides a rare opportunity to gain exposure to the financial arm of one of India’s oldest and most trusted conglomerates.
The timing of the issue — amid global economic headwinds — signals confidence in the resilience of domestic markets and the long-term growth prospects of India’s credit sector.
With multiple large listings scheduled in quick succession, India’s primary markets are on course for a record fundraising month, reflecting both global interest and the growing dominance of domestic capital.
The Tata offering may serve as a benchmark for upcoming financial sector IPOs, highlighting the continued strength of investor demand even as global volatility persists.
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