Tata Capital Ltd has begun taking orders for its initial public offering (IPO), which could raise up to 155 billion rupees (US$1.7 billion or RM7.4 billion) — making it India’s largest IPO so far this year and setting the stage for a record month in the country’s IPO market.
The financial services arm of the Tata Group is offering shares at between 310 and 326 rupees each until Wednesday, valuing the company at up to 1.4 trillion rupees. Trading is expected to start on Oct 13. At that valuation, Tata Capital would be worth more than twice HDB Financial Services Ltd, which listed earlier this year.
The IPO will be followed closely by another billion-dollar listing — LG Electronics Inc’s Indian unit — underscoring growing investor confidence and strong liquidity in India’s capital markets. Together, new listings could push India’s October IPO proceeds beyond US$5 billion.
“There is now ample capacity to absorb supply,” said Raghuram K, partner at Uniqus Consultech, citing strong mutual fund inflows that continue to fuel investment appetite.
Tata Capital’s offering comprises up to 475.8 million new and existing shares sold by the company, its parent, and International Finance Corp. As of 10.30am Monday in Mumbai, the issue had received bids for 9% of the shares offered, according to BSE data.
Ahead of the IPO, Tata Capital raised 46.4 billion rupees from anchor investors including Morgan Stanley, Goldman Sachs, Nomura, and Life Insurance Corp of India.
The deal gives investors exposure to the Tata Group’s financial services arm, marking India’s biggest IPO since Hyundai Motor India Ltd’s US$3.3 billion debut last year.
Founded in 2007, Tata Capital offers a wide range of financial services to retail, corporate, and institutional clients. As of June 2025, it managed assets worth 2.33 trillion rupees, serving 73 million customers. Analysts at ICICI Direct said Tata Capital’s diversified portfolio and steady growth make it an appealing long-term investment.
At the top of the pricing range, Tata Capital would trade at 3.4 times book value — cheaper than rivals such as Bajaj Finance Ltd, Cholamandalam Investment & Finance Co, and HDB Financial Services, according to SBI Securities.
India’s IPO boom reflects strong corporate expansion, deep domestic liquidity, and growing retail participation. Despite some cooling in stock market momentum this year, India remains one of the world’s most active IPO markets, ranking fourth globally with US$11.2 billion raised as of the third quarter.
JPMorgan, JM Financial, and Kotak Mahindra Capital expect the trend to continue, supported by regulatory easing that encourages large private firms to list and more flexible financing rules for IPO investors.
