Tata Capital eyes valuation of $16.5B for its $1.85B IPO
**Tata Capital Eyes Valuation of $16.5 Billion for Its $1.85 Billion IPO**
*By Dwaipayan Roy | Sep 23, 2025, 08:03 PM*
Tata Capital, the financial services arm of the Tata Group, is preparing for a significant initial public offering (IPO) scheduled for early October. The company is targeting a post-money equity valuation of approximately $16.5 billion (around ₹1,46,000 crore) for the listing. This follows extensive roadshows and discussions with stakeholders, according to sources cited by Moneycontrol.
**IPO Launch Details**
The IPO is expected to open for public subscription on October 6, 2025. The anchor portion is likely to take place on October 3, with the public subscription window running from October 6 to October 8.
The total size of the IPO—which includes a fresh issue of shares along with an offer for sale by Tata Sons and the International Finance Corporation (IFC)—is pegged at around $1.85 billion (nearly ₹16,400 crore). Life Insurance Corporation (LIC) is anticipated to be a major investor in this offering.
**Use of Proceeds**
Tata Capital plans to utilize the funds raised from the IPO to bolster its Tier-I capital base. Strengthening this capital base will enable the company to meet future capital requirements and support onward lending activities.
For this substantial transaction, Tata Capital has appointed top legal advisors, including Cyril Amarchand Mangaldas, AZB & Partners, and Latham & Watkins.
**Business Overview**
Tata Capital commenced its lending operations in 2007 and is classified as an upper layer Non-Banking Financial Company (NBFC) by the Reserve Bank of India (RBI). Over the years, it has catered to more than seven million customers.
The company offers a diverse portfolio of over 25 lending products designed for salaried and self-employed individuals, entrepreneurs, small businesses, SMEs, and corporate clients. Beyond lending, Tata Capital also distributes third-party products such as insurance and credit cards.
As of March 31, 2025, retail and SME customers constituted 88.5% of Tata Capital’s total gross loans. The company operates a pan-India distribution network comprising nearly 1,500 branches.
Despite recent challenging market conditions for NBFC listings, Tata Capital remains optimistic about its upcoming IPO and the growth prospects ahead.
https://www.newsbytesapp.com/news/business/everything-we-know-about-tata-capital-s-mega-ipo/story
