Tata Capital, which has been in the news for some time ahead of its much-anticipated initial public offering (IPO), is likely to hit the Indian primary market as early as October, according to a Bloomberg report.
The report, quoting sources familiar with the matter, suggested that the Tata Capital IPO could open in the first half of October after asking the Reserve Bank of India (RBI) for a short extension to the launch timetable.
Tata Capital IPO Details
Tata Capital is looking to raise as much as ₹17000 crore ($1.9 billion) at a valuation of about $18 billion in the IPO, which would make it the biggest in India since Hyundai Motor India Ltd.’s record $3.3 billion offering last year, the Bloomberg report added.
As per the updated Draft Red Herring Prospectus (DRHP) filed in August, the Tata Capital IPO will comprise a fresh issue of up to 21 crore equity shares and an offer for sale (OFS) of up to 26.58 crore shares, totalling 47.58 crore shares.
Promoter Tata Sons will divest up to 23 crore shares, while International Finance Corporation (IFC) will offload up to 3.58 crore shares.
Currently, Tata Sons owns 88.6% of Tata Capital, with IFC holding 1.8 per cent.
Why is Tata Capital launching an IPO?
The Tata Capital IPO comes in the wake of the RBI order for large financiers to list by the end of September to improve transparency in the sector and help mitigate risks. Tata Capital was designated as an upper-layer NBFC in September 2022.
Other companies like HDB Financial and Bajaj Housing Finance have hit the primary market in the last year to comply with the RBI norms.
Tata Capital plans to use the proceeds from the fresh issue to augment Tier-I capital and fuel lending growth.
It delivered strong financials in Q1 FY26, reporting a net profit of ₹1,041 crore, more than double the ₹472 crore earned a year earlier.
(With inputs from agencies)
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