Tata Capital Eyes $11 Billion Valuation in India’s Biggest IPO of 2025

Mumbai: Tata Capital, the financial services subsidiary of Tata Group, is aiming for a valuation of up to $11 billion in what could be India’s largest initial public offering (IPO) of the year, according to a Bloomberg report citing sources.

The company is planning to raise up to $2 billion through the IPO, with its board recently approving a listing of 230 million shares. In addition to the IPO, Tata Capital has also announced a rights issue worth ₹1,504 crore ($172 million).

Tata Capital’s Role in Financial Inclusion

As a non-banking financial company (NBFC), Tata Capital plays a pivotal role in financial inclusion by offering loans and financial services to customers who lack access to traditional banking. With over 900 branches across India, the company serves a diverse customer base, ranging from small businesses to individual borrowers.

India’s IPO Market Faces Challenges Amid Market Volatility

Despite the strong momentum in India’s IPO market in recent years, a sustained sell-off in equities has led to weaker investor sentiment. February’s IPO subscription data showed reduced retail participation, signaling caution among investors amid volatile market conditions.

However, several big-ticket IPOs are in the pipeline. LG Electronics India is preparing a $1.5 billion public offering, while Prudential Plc is exploring a $1 billion IPO for its Indian unit. Last year, Hyundai Motor India Ltd successfully raised $3.3 billion, marking one of the biggest IPOs in India’s history.

Investor Sentiment and Market Outlook

While institutional investors continue to show interest in large IPOs, retail investor enthusiasm has waned, particularly in the small and medium enterprise (SME) segment. Many firms that went public in recent months have seen muted demand, reflecting broader market caution.

Tata Capital’s IPO will serve as a key test for investor appetite, given its strong brand reputation and role in India’s rapidly expanding financial sector.

Disclaimer: The above content is for informational purposes only and does not constitute investment advice. Readers should consult a qualified financial advisor before making any investment decisions.