March 4, 2025
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Tata Capital Seeks $11 Billion Valuation in India’s Largest IPO of the Year
Tata Group is aiming for an impressive valuation of up to $11 billion for its financial services arm, Tata Capital, which could become India’s largest initial public offering (IPO) in 2025, according to Bloomberg sources. The IPO is set to raise up to $2 billion, with the company’s board recently approving the sale of up to 230 million shares, including an offer for sale by existing shareholders. In addition, Tata Capital has announced a rights issue of ₹1,504 crore (approximately $172 million).
As a prominent non-banking financial company (NBFC), Tata Capital specializes in providing essential loans and financial services to underserved customers, who often lack access to traditional banking. With a network of over 900 branches across India, the company plays a pivotal role in enhancing financial inclusion across the country.
Despite fluctuations in the broader market, India’s IPO landscape remains active, with several significant companies preparing to go public. LG Electronics India is planning a $1.5 billion IPO, while Prudential Plc is reportedly exploring a $1 billion listing of its Indian arm. In 2024, Hyundai Motor India Ltd successfully raised $3.3 billion through its IPO.
However, recent market volatility has caused some caution among investors. February’s IPOs saw weak subscription numbers, especially among retail investors, as equity market fluctuations dampened sentiment. Smaller and medium-sized enterprises (SMEs) saw particularly low participation, indicating growing investor hesitancy in the face of market uncertainty.
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