Mumbai – Tata Capital, a key financial services arm of the Tata Group, is gearing up for a major stock market debut, targeting a valuation of up to $11 billion. If successful, this could become India’s largest initial public offering (IPO) of 2025.
According to sources cited in a Bloomberg report, the company is set to raise $2 billion through the IPO. Additionally, its board has approved the listing of 230 million shares. In a parallel move, Tata Capital has also announced a rights issue worth ₹1,504 crore ($172 million) to strengthen its financial position.
Tata Capital’s Impact on Financial Inclusion
Operating as a non-banking financial company (NBFC), Tata Capital plays a crucial role in providing financial services to those underserved by traditional banks. With a nationwide presence spanning over 900 branches, the company caters to a wide customer base, including small businesses and individual borrowers, promoting greater financial inclusion across India.
Indian IPO Market Faces Uncertain Conditions
India’s IPO market has witnessed strong activity in recent years, but current market conditions remain volatile. A decline in equity investments and cautious investor sentiment have led to lower retail participation in recent IPOs.
Despite this, several major IPOs are lined up for 2025. Notably, LG Electronics India is planning a $1.5 billion public offering, while Prudential Plc is considering a $1 billion IPO for its Indian division. In 2024, Hyundai Motor India Ltd made headlines by raising $3.3 billion, marking one of India’s biggest IPOs.
Investor Outlook for Tata Capital IPO 2025
While institutional investors remain interested in large-scale IPOs, retail investor enthusiasm has dipped, particularly in the SME segment. Several newly listed firms have seen muted demand, reflecting broader market concerns.
Tata Capital’s IPO is expected to be a key market test, given its strong brand reputation and role in India’s expanding financial sector. Investor’s response to this offering could set the tone for upcoming IPOs in 2025.
Disclaimer: This article is intended for informational purposes only and should not be regarded as financial advice. Please consult a certified financial expert before making any investment decisions.
