Tata Capital Ltd. started taking orders on Monday for an initial public offering that may raise as much as 155 billion rupees ($1.7 billion), India’s biggest listing this year, and putting the country’s hot IPO market on course for a record month.
The shadow lender’s shares, which are expected to start trading on Oct. 13, are being sold at 310 rupees to 326 rupees apiece until Wednesday, valuing the company at as high as 1.4 trillion rupees ($15.7 billion). That would value the Tata Group unit at more than twice the market capitalization of HDB Financial Services Ltd., which went public earlier this year.
Tata’s offering will be followed by LG Electronics Inc.’s Indian unit in another billion-dollar IPO launch the next day, a sign that confidence is growing about investor demand being able to absorb large issuances despite the headwinds faced by the local stock market. All in all, Indian IPO proceeds could climb to a record in October, exceeding $5 billion.
“There is now ample capacity to absorb supply,” said Raghuram K, a partner at Uniqus Consultech. Mutual funds are awash with money flowing in through monthly investment plans, giving them the confidence to keep deploying capital, he said.
As for Tata’s offering, it will involve the sale of as many as 475.8 million new and existing shares by Tata Capital, its parent, and International Finance Corp., according to the IPO prospectus. The IPO drew bids for 39% of the shares on its first day of subscription, data from the BSE show.
On Friday, the company said it raised 46.4 billion rupees ($523 million) by selling shares to anchor investors including funds managed by Morgan Stanley, Goldman Sachs Group Inc. and Nomura Holdings Inc. Life Insurance Corp., India’s biggest insurer, was among the key subscribers to the company’s shares.
For investors, the Tata Capital deal offers exposure to the financial services arm of one of India’s largest and most-reputed conglomerates, and is set to be the nation’s biggest IPO since Hyundai Motor India Ltd.’s record $3.3 billion offering last year.
The company, incorporated in 2007, offers a range of financial products and services to retail, corporate and institutional clients. Its assets under management stood at 2.33 trillion rupees as of June 2025, catering to 73 million customers.
Source: Bloomberg
