Tata Capital Targets ₹17,000 Crore IPO in October After Extension

New Delhi, September 12: Tata Capital is preparing its much anticipated Initial Public Offering (IPO). Tata Capital is looking to raise a whopping USD 2 billion, or ₹17,000 crore by launching its IPO in the first half of October tentatively, after it received an extension for the deadline to list its shares.

IPO Timeline Extension

Tata Capital was earlier required to mandatorily list its shares on stock exchanges by the end of September. However, it has now received an extension for the deadline, and the company can list its shares by the end of October. Tata Capital will now look to list its shares at a market valuation of USD 18 billion. This is a sharp rise from the USD 11 billion valuation it tagged when it filed confidential IPO papers with SEBI in April.

Fresh Issue of 21 Core Equity Shares

As per the updated Draft Red Herring Prospectus (DRHP) filed in August, Tata Capital’s proposed IPO will include a fresh issue of up to 21 crore equity shares and an offer for sale (OFS) of up to 26.58 crore shares, totaling 47.58 crore shares. Tata Capital will sell up to 23 crore shares. It currently owns 88.6% of Tata Capital. International Finance Corporation (IFC), which currently holds 1.8%, will sell up to 3.58 crore shares.

Strong Run for Financial Sector Listings

Tata Capital’s public issue comes at a time when the Indian stock market is witnessing a dream run when it comes to financial sector IPOs. HDB Financial Services raised ₹12,500 crore in June. On the other hand, Bajaj Housing Finance made a blockbuster debut in September 2024 with a 135% listing day premium. If successful, Tata Capital IPO will be India’s largest in the financial sector and the biggest overall after Hyundai Motor India’s USD 3.3 billion (₹27,870 crore) listing in October 2024.

Tata Capital’s IPO will mark the Tata Group’s second listing in recent years, following Tata Technologies’ successful market debut in November 2023. In terms of financials, the company showcased strong financials in Q1FY26. It reported a net profit of ₹1,041 crore, which was more than double the amount of ₹472 crore it posted in the same quarter in the previous year. Total income rose to ₹7,692 crore from ₹6,557 crore in the same period last year.

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