(Bloomberg) -- Tata Capital Ltd. said it’s planning to go public in what may be one of India’s largest initial public offerings of the year.
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The financial unit of the Tata Group plans to sell 230 million new shares in the IPO, and tack on a rights offering for existing shareholders, the company said in an exchange filing Tuesday. Though it didn’t specify the value of the total offering, MoneyControl has reported that Tata Capital was planning to raise at least 150 billion rupees ($1.7 billion) via an IPO.
That 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. India’s IPO market has defied the recent slump in Indian stocks, with companies continuing to list their shares at a pace echoing last year’s record proceeds.
A company representative didn’t immediately respond to queries. As part of the fundraising, Tata Capital said the rights-offering portion of the deal will aim to sell 15 billion rupees of stock.
Tata Capital is poised to be the latest unit from the $165 billion Tata Group, which makes everything from table salt to Jaguar sports cars, to go public. Tata Technologies Ltd. rolled out its IPO in 2023.
News of the IPO helped drive up shares of Tata Investment Corp., which jumped as much as 10% after the announcement. The company held 80.7 million shares of Tata Capital as of March 31, according to its annual report.
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.
Tata Capital caters to the diverse needs of retail, housing, small and medium enterprises and corporate customers across India with a network of over 900 branches. Its wide range of offerings include credit cards to consumer finance, microfinance and private equity.
--With assistance from Alex Gabriel Simon.