**Tata Capital Eyes Valuation of $16.5B for Its $1.85B IPO**
*By Dwaipayan Roy | Sep 23, 2025, 08:03 PM*
Tata Capital, the financial services arm of the Tata Group, is gearing up for a significant initial public offering (IPO) scheduled for early October. The company is targeting a post-money equity valuation of approximately $16.5 billion (around ₹1,46,000 crore) for the listing, according to sources cited by Moneycontrol familiar with the matter.
**IPO Launch Details**
The IPO is expected to open for public subscription on October 6, with the anchor portion likely to take place on October 3. The overall size of the IPO, which includes a fresh issue of shares along with an offer for sale by Tata Sons and the International Finance Corporation (IFC), is estimated to be around $1.85 billion (nearly ₹16,400 crore). Notably, Life Insurance Corporation (LIC) is anticipated to be a major investor in this offering.
**Fund Utilization**
Proceeds from the IPO will primarily be used to strengthen Tata Capital’s Tier-I capital base. This bolstering of capital is aimed at meeting future capital requirements, including expanding the company’s onward lending capabilities. To manage this large-scale IPO, Tata Capital has appointed leading legal firms Cyril Amarchand Mangaldas, AZB & Partners, and Latham & Watkins as its legal counsel.
Despite recent challenging market conditions for Non-Banking Financial Company (NBFC) listings, Tata Capital remains optimistic about the upcoming IPO’s success.
**Business Overview**
Established in 2007, Tata Capital operates as an upper-layer NBFC regulated by the Reserve Bank of India (RBI). Since inception, it has served over seven million customers through a wide array of more than 25 lending products tailored to salaried and self-employed individuals, entrepreneurs, small businesses, SMEs, and corporates. Besides lending, Tata Capital also distributes third-party products such as insurance and credit cards.
As of March 31, 2025, retail and SME customers accounted for 88.5% of Tata Capital’s total gross loans. The company’s extensive pan-India distribution network includes nearly 1,500 branches nationwide.
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Tata Capital’s upcoming IPO marks a pivotal moment in its growth trajectory, positioning it for enhanced capital strength and continued expansion across India’s diverse financial services landscape.
https://www.newsbytesapp.com/news/business/everything-we-know-about-tata-capital-s-mega-ipo/story
