Tata Consultancy Services Ltd.’s office in Mumbai, India, on Wednesday, Feb. 12, 2025. Photographer: Abeer Khan/Bloomberg
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Tata Capital—the financial services arm of Tata Group, one of India’s largest conglomerates—is gearing up for the country’s biggest IPO this year, with the maiden share sale expected to raise as much as 155 billion rupees ($1.7 billion).
The company, along with existing shareholders including Tata Sons and International Finance Corp. are selling up to 475.8 million existing and new shares between 310 rupees to 326 rupees apiece, according to a newspaper advertisement released on Monday. Proceeds from the IPO will strengthen Tata Capital’s capital base and support future lending activities.
Book building for the IPO will open for anchor investors on October 3, while the shares will be available to retail investors from October 6 to 8. Tata Capital shares will begin trading on India’s National Stock Exchange on October 13.
Tata Capital provides loans to consumers and businesses through almost 1,500 branches across India. Serving 7 million customers nationwide, it offers home loans, business finance, microfinance, private equity funding, and credit cards. The company’s net profit rose 16% to 36.6 billion rupees in the year ended March.
The company is coming to market as IPO activity in India is picking up. Earlier this month, Urban Co., which provides a range of services from cleaning to plumbing, surged 62% on its first day of trading, the best market debut for Indian IPOs above $100 million. Several IPOs are in the pipeline, including that of Walmart-owned digital wallet PhonePe and billionaire Mukesh Ambani’s Reliance Jio, India’s largest wireless carrier.
Tata Capital is part of India’s oldest conglomerate that the late Ratan Tata (who passed away in October) transformed into an industrial powerhouse. Under his two-decade leadership, he made global acquisitions including that of British steelmaker Corus Group in 2007 and luxury carmaker Jaguar Land Rover the following year.