Tata Capital is aiming big. The financial arm of the Tata Group is preparing for its much-awaited IPO, and insiders say the company is targeting a massive valuation of $18 to $20 billion.
The IPO is expected to launch in the first half of September, and Tata Capital plans to raise around $2.2 billion through it. This is a huge jump from its earlier valuation target of about $11 billion.
So, what changed?
According to people familiar with the plan, Tata Capital got a strong boost from a recent rights issue and the success of other IPOs in India. One big example is HDB Financial Services, which raised around $1.5 billion recently and saw a 14% jump on its first day of trading. That success is giving confidence to Tata Capital.
If the new valuation happens, Tata Capital will become the fourth-largest shadow bank in India. Only Bajaj Finance ($69B), Bajaj Finserv ($38B), and Jio Financial Services ($23B) will be ahead. For context, HDB Financial is now valued at about $7.7 billion.
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Tata Capital first filed its IPO plans confidentially in April. It recently got approval from SEBI, India’s market regulator. Now, the company is expected to file an updated Draft Red Herring Prospectus (DRHP) as early as this week. This is the next step before the final public offer.
There is also a deadline from the Reserve Bank of India (RBI). The RBI has asked large non-banking financial companies, like Tata Capital, to list on the stock exchange by the end of September. So the timing lines up.
India’s stock market is seeing a lot of excitement this year. Big names are lining up for IPOs. For example, the Indian arm of LG Electronics is planning to raise about $1.7 billion. According to Kotak Mahindra Capital, India could see over $30 billion raised through IPOs in the next 12 months.
Clearly, Tata Capital is not just riding the wave — it’s aiming to lead it.
But so far, Tata Capital and Tata Sons have not made any public comment about the IPO plans.
This IPO, if successful, could be a major moment for India’s financial sector. It shows how shadow banks are growing fast and becoming key players in the economy.
For investors, it could be a golden opportunity. For Tata, it’s a proud step forward in building India’s future.
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