Tata Capital Aims To Go Public With Rs 1.67 lakh Crore Valuation In Sight: All You Need to Know

Tata Capital Ltd. is preparing to go public with an ambitious valuation target between $18 billion and $20 billion (around Rs 167,000 crore), according to a Bloomberg report citing people familiar with the matter. The Tata Group’s financial services arm is likely to file an updated Draft Red Herring Prospectus (DRHP) as early as this week, the sources added.

This new valuation marks a significant jump from the company’s earlier IPO target of around $11 billion. The upward revision is reportedly driven by strong investor interest in recent Indian public offerings and a recent rights issue that bolstered the firm’s financial position.

Notably, HDB Financial Services Ltd., another major non-bank lender, successfully raised $1.5 billion in its IPO, boosting investor sentiment across the sector.

According to Bloomberg, Tata Capital is expected to raise approximately $2.2 billion (Rs 18,370 crore) through the share sale, with a likely launch in the first half of September. Representatives from Tata Capital and its parent company, Tata Sons Pvt., declined to comment on the report. 

Also Read: Tata Capital Gets SEBI Nod for Rs 17,200 Crore IPO; Public Filing Likely in July | Republic World

India’s NBFC Sees IPO Boom

If Tata Capital hits its valuation target, it would become the fourth-largest non-banking financial company (NBFC) in India by market cap—trailing only Bajaj Finance Ltd. ($69 billion), Bajaj Finserv Ltd. ($38 billion), and Jio Financial Services Ltd. ($23 billion).

Shares of Tata Investment Corp., which holds stakes in several Tata Group entities, surged 4% amid heavy trading volumes following reports of the IPO plan.

This listing momentum comes amid broader enthusiasm in India’s equity markets. HDB, for instance, has already achieved a post-listing valuation of around $7.7 billion after a 14% surge on its debut.

Meanwhile, South Korea’s LG Electronics is preparing to list its Indian unit in a deal that could fetch up to $1.7 billion.

In an interview with Bloomberg News, a senior executive at Kotak Mahindra Capital Co. projected that Indian IPOs could collectively raise over $30 billion in the coming year, underscoring the bullish outlook for capital markets.

Regulatory Push

Tata Capital had filed for a confidential IPO in April and secured regulatory clearance last month. Under India’s capital markets framework, the company must now release an updated draft prospectus for public comment before submitting the final version.

The Reserve Bank of India (RBI) has mandated that larger NBFCs like Tata Capital must list by the end of September, as part of a broader push to enhance regulatory oversight and transparency in the shadow banking sector.