Tata Capital seeks as much as $11 billion value in IPO

Tata branding. Photographer: Dhiraj Singh/Bloomberg

Tata Group is seeking a valuation of as much as $11 billion for its financial services unit in what could be India’s biggest initial public offering this year, according to people familiar with the development.

Tata Capital Ltd.’s IPO could raise as much as $2 billion, the people said, asking not to be identified because the deliberations are private.

Considerations are ongoing and details could change, the people said. Representatives for Tata didn’t immediately respond to requests for comment.

Tata Capital’s board last week approved the listing of as many as 230 million shares, along with an offer for sale of equity by existing shareholders. It also announced a rights issue of as much as 15.04 billion rupees ($172 million).

India’s IPO market is defying a recent slump in stocks. LG Electronics India is also among those planning to list this year, possibly raising $1.5 billion. Prudential Plc has hired banks for a potential $1 billion IPO of its Indian unit. Last year, Hyundai Motor India Ltd. raised $3.3 billion in a record IPO for India.

Tata Capital is a non-bank financial institution. These so-called shadow banks typically provide services such as loans to customers who have limited or no access to traditional banking. Mumbai-based Tata Capital has more than 900 branches across India, according to its website.

On Dec 24, 2024, Moneycontrol had reported that Tata Capital has initiated work on the mega Rs 15,000 crore plus IPO which would be a combination of primary and secondary issuance of shares, roping in Cyril Amarchand Mangaldas and Kotak Mahindra Capital as advisors. Read More.