Tata Capital IPO: Tata group’s financial arm looks to raise $2 bln via share sale, seeks $11 bln in valuation: Report

Tata Capital IPO: Tata Group is aiming for a valuation of up to $11 billion for its financial services division, which may become India’s largest initial public offering this year, said Bloomberg in its recent report.

Tata Capital IPO could potentially generate as much as $2 billion. Discussions are still ongoing, and specifics may shift, the sources indicated, highlighted Bloomberg in its report. Further, Tata representatives did not respond promptly to requests for comments, as clarified by Bloomberg in its latest report.

According to the news report, the board of Tata Capital approved the listing of up to 230 million shares, in addition to an equity offer for sale by current shareholders. It also revealed a rights issue of as much as 15.04 billion rupees (approximately $172 million).

Despite a recent downturn in stock markets, India’s IPO sector remains vibrant. LG Electronics India is among the companies planning to go public this year, potentially raising $1.5 billion. Prudential Plc has engaged banks for a possible $1 billion IPO of its Indian subsidiary. Last year, Hyundai Motor India Ltd. secured $3.3 billion in an unprecedented IPO for the country, according to the report.

Company Details

Tata Capital functions as a non-banking financial entity. These so-called shadow banks generally offer financial services such as loans to clients who face difficulties accessing traditional banking options. Tata Capital, based in Mumbai, operates more than 900 branches throughout India, as stated on its website.

Tata Capital is set to become the latest segment of the $165 billion Tata Group to go public, which produces a wide array of products from table salt to Jaguar sports cars, following the recent IPO of Tata Technologies Ltd. Tata Tech experienced more than a twofold increase on its inaugural trading day in 2023, marking the best debut for any Indian float, which raised over $300 million, according to information compiled by Bloomberg.

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