**Tata Capital Eyes Valuation of $16.5 Billion for Its $1.85 Billion IPO**
*By Dwaipayan Roy | Sep 23, 2025, 8:03 PM*
Tata Capital, the financial services arm of the Tata Group, is preparing for a significant initial public offering (IPO) scheduled for early October. The company is targeting a post-money equity valuation of approximately $16.5 billion (around ₹1,46,000 crore) for the listing, according to sources cited by Moneycontrol.
**IPO Launch Details**
The IPO is expected to open for public subscription on October 6, with the anchor portion likely to be allotted on October 3. The total size of the IPO—which includes a fresh issue of shares as well as an offer for sale by Tata Sons and the International Finance Corporation—is estimated at about $1.85 billion (nearly ₹16,400 crore). Life Insurance Corporation of India (LIC) is anticipated to be a major investor in this offering.
**Utilization of Funds**
Proceeds from the IPO will primarily be used to strengthen Tata Capital’s Tier-I capital base. This enhancement will support the company’s future capital requirements and facilitate onward lending activities. For this significant IPO, Tata Capital has enlisted the legal services of Cyril Amarchand Mangaldas, AZB & Partners, and Latham & Watkins.
Despite recent challenges in the non-banking financial company (NBFC) market space, Tata Capital remains optimistic about its upcoming public listing.
**Business Overview**
Tata Capital, classified as an upper-layer NBFC by the Reserve Bank of India (RBI), began its lending operations in 2007. Since then, it has served over seven million customers across India.
The company offers an extensive portfolio of more than 25 lending products catering to salaried and self-employed individuals, entrepreneurs, small businesses, SMEs, and corporates. Apart from lending, Tata Capital also distributes third-party financial products, including insurance and credit cards.
As of March 31, 2025, retail and SME customers accounted for 88.5% of the company’s total gross loans. Tata Capital supports its operations through a pan-India distribution network comprising nearly 1,500 branches.
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Stay tuned for more updates on Tata Capital’s IPO and its progress in the financial services sector.
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