Tata Capital seeks $11 billion valuation for upcoming India IPO: Report

The report said that Tata Capital IPO could raise up to $2 billion. However, details could change as considerations are ongoing.

Last week, the Board of Directors of Tata Capital approved the initial share sale plans. The proposed IPO will consist of a fresh issue of 23 crore shares and an offer-for-sale (OFS) component, the company said in an exchange filing to the NSE and BSE listing departments.

The company said its Board has approved "Initial Public Offering of the equity shares of face value of ₹10 each ("Equity Shares") comprising of (i) a fresh issue of up to 23,00,00,000 (Twenty Three crore) Equity Shares and (ii) an offer for sale of Equity Shares by certain existing and eligible shareholders of the company, subject to market conditions, receipt of applicable approvals, regulatory clearances and other relevant considerations."

The financial services unit of Tata Group is necessitated to list on stock exchanges by September 2025 according to the "upper layer" non-banking financial companies (NBFCs) regulations of the Reserve Bank of India.

According to Crisil Ratings, as of March 31, 2024, 92.83% of Tata Capital's shares are owned by Tata Sons. Other Tata Group companies hold the majority of the remaining equity shares.

"Tata Sons also has personnel from its senior management on TCL's Board. Tata Sons has infused capital of ₹6,097 crore in TCL in the last five fiscals, of which ₹2,500 crore was infused in fiscal 2019, ₹1,000 crore in fiscal 2020, ₹594 crore in fiscal 2023 and ₹2,003 crore during fiscal 2024, indicating the intent of the group to step up its focus on the lending business," the report said.

NBFC Tata Capital and its subsidiaries offer financial services in areas such as wealth services, commercial finance, consumer loans and the distribution and marketing of Tata Cards.