Catenaa, Tuesday, February 25, 2025– Tata Capital, the financial arm of India’s Tata Group said on Tuesday, is planning to go public to sell 230 million shares, in one of the largest Initial Public Offering(IPO) of the year.
In a filing to the exchange, Tata Group said it plans to sell 230 million new shares in the Tata Capital IPO and tack on a rights offering for existing shareholders.
Although the filing did not specify the value Tata Capital intends to raise through the IPO, MoneyControl has reported that Tata Capital was planning to raise at least $1.7 billion through an IPO.
If the IPO value tallies with the MoneyControl report, it would exceed the $ 1.5 billion that LG Electronics Inc.’s Indian unit has been said to be seeking for going public, possibly making Tata Capital the country’s biggest such deal this year.
Established in 2007, Tata Capital provides a wide range of loans, from housing to personal and Tata Sons is its top shareholder, with a 92.8% stake as of March 2024. Tata Capital will be the first Tata Group company to go for an IPO since Tata Technologies in November 2023.
As part of the fundraising, Tata Capital said the rights-offering portion of the deal will aim to sell $ 173 million of stock.
News of the IPO helped drive up shares of Tata Investment Corp., which jumped as much as 10% after the announcement on Tuesday.
India’s IPO market raised more than $20 billion last year, second only to the US, after record-breaking deals such as those of Hyundai Motor Co.’s local unit and two others that exceeded $1 billion.
The market is off to a good start in 2025, with Hexaware Technologies Ltd. recently listing after the country’s first billion-dollar IPO. And the local securities regulator has said it’s currently processing more than 60 IPO applications.
