Tata Capital Ltd. is preparing India’s biggest share sale of 2025, with its initial public offering seeking to raise up to 155 billion rupees.
The deal is designed to expand the company’s tier-1 capital base while meeting regulatory requirements.
The financial services arm of Tata Sons will offer as many as 475.8 million shares at a price band of 310 rupees to 326 rupees each.
At the top of the range, Tata Capital’s market value will reach around $16 billion, positioning it among India’s most valuable non-banking financial companies.
India’s IPO market reaches a new peak
The Tata Capital share sale comes at a time when Indian equity markets are experiencing their busiest period for listings in nearly three decades.
The deal follows Hyundai Motor India Ltd.’s $3.3 billion IPO last year, which remains the country’s largest on record.
Investor activity has been strong despite challenges in the non-banking financial sector, where some lenders have delayed plans due to asset quality concerns and rising household debt stress.
Tata Capital’s offering is expected to draw attention back to the sector after a relatively subdued start to the year.
IPO structure and valuation details
The IPO will see shares sold by Tata Sons Pvt. and the International Finance Corporation alongside Tata Capital.
Anchor investors will be able to subscribe from Friday, while public subscriptions will run from October 6 to October 8, with listing expected on October 13.
Tata Capital posted a profit of 36.6 billion rupees for the year ending March, a 16% rise compared with the previous year, and its gross loan book stood at 2.27 trillion rupees as of March 31.
Unsecured loans made up 21% of this portfolio, according to its prospectus.
Regulatory and operational background
The Reserve Bank of India had directed large shadow financial entities, including Tata Capital, to list by the end of September to increase transparency in the financial system.
Tata Capital, however, sought and received a short extension to finalise preparations for the IPO.
The company operates nearly 1,500 branches across India, offering a mix of retail and business loans.
The IPO proceeds will be used to bolster its capital buffers, helping it meet future lending requirements.
Lead managers and market expectations
The book-running lead managers of the IPO include Kotak Mahindra Capital Co., Axis Bank Ltd., HDFC Bank Ltd., ICICI Securities Ltd., IIFL Capital Services Ltd., SBI Capital Markets Ltd., as well as the local units of BNP Paribas SA, Citigroup Inc., HSBC Holdings Plc, and JPMorgan Chase & Co.
Market participants will be watching the performance closely, as the success of this deal could influence upcoming offerings in India’s expanding equity pipeline.
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