Tata Capital Sets Stage For $2 Billion IPO After Global Roadshows; Valuation Seen At $18 Billion

Tata Capital has wrapped up a series of investor roadshows across major global financial hubs, setting the stage for its much-anticipated $2 billion (Rs 17,200 crore) initial public offering in the week beginning Sept. 22, according to people familiar with the development.

The non-banking finance company is expected to debut on the bourses by Sept. 30, making it the largest IPO of 2025.

The roadshows, launched in August, drew strong participation from global and domestic institutional investors, industry sources said.

Senior leadership of the Tata Group's non-banking financial arm held meetings in Hong Kong, Singapore, London, New York, and key Indian cities.

The sessions showcased Tata Capital's diversified portfolio, robust financials, and digital-first growth strategy, they added.

Market participants said the successful investor outreach has positioned the company well for its market debut, with valuations now expected to touch $18 billion. This marks a sharp jump from the $11 billion valuation when Tata Capital filed confidential IPO papers in April.

As per the updated Draft Red Herring Prospectus filed in August, the IPO will comprise a fresh issue of up to 21 crore equity shares and an offer for sale of up to 26.58 crore shares, totalling 47.58 crore shares.

Promoter Tata Sons will divest up to 23 crore shares, while International Finance Corporation will offload up to 3.58 crore shares.

Currently, Tata Sons owns 88.6% of Tata Capital, with IFC holding 1.8%.

Proceeds from the fresh issue will be deployed to augment Tier-I capital and fuel lending growth.

If successful, this IPO will become the largest public issue in India's financial sector. It will also mark the Tata Group's second public listing in recent years, following the debut of Tata Technologies in November 2023.

The IPO is being undertaken in line with the Reserve Bank of India's (RBI) listing mandate for upper-layer NBFCs, which requires them to be listed within three years of classification. Tata Capital was designated as an upper-layer NBFC in September 2022.

In a similar move, HDB Financial Services -- the non-banking arm of HDFC Bank -- went public in June with a Rs 12,500 crore issue. Bajaj Housing Finance, another upper-layer NBFC, made a blockbuster market debut in September 2024, closing its first day of trade with a 135 per cent premium over the issue price.

Tata Capital delivered strong financials in Q1 FY26, reporting a net profit of Rs 1,041 crore, more than double the Rs 472 crore earned a year earlier.

Its total income climbed to Rs 7,692 crore from Rs 6,557 crore in the June 2024 quarter.