Tata Capital’s initial public offering is seeking to raise as much as 155 billion rupees (US$1.7 billion), in what is set to be India’s largest listing so far this year.
The financial-services company and shareholders Tata Sons Pvt. and the International Finance Corporation are offering as many as 475.8 million shares at a price band of 310 rupees to 326 rupees each, according to a newspaper advertisement.
At the upper end of the range, Tata Capital would be valued at around US$16 billion, according to terms of the deal seen by Bloomberg News.
Tata Capital’s listing, set to be India’s biggest since Hyundai Motor India’s record US$3.3 billion offering last year, comes as the market gears up for its busiest IPO month in nearly three decades. The deal is expected to revive investor appetite after a slow start to the year, even as strains in the shadow banking sector — rising household debt stress and worsening asset quality — have forced some lenders to shelve or delay their listing plans.
“Weak economic activity, uncertainty over tariffs, and job continuity concerns have led to shadow banks tightening their underwriting standards,” said Anil Gupta, senior vice president and co-group head for financial sector ratings at ICRA, an affiliate of Moody’s Ratings.
As of March 31, Tata Capital’s unsecured loans made up 21% of its 2.27 trillion-rupee gross loan book, according to its IPO prospectus.
See also: IPOs are tumbling out, but delistings are still going on
The company is set to start taking orders from anchor investors Friday, and from the broader public from Oct 6 to Oct 8. It expects shares to start trading on Oct 13.
Tata Capital's IPO Is Set to be India's Biggest in 2025
See also: Soon Hock Enterprise launches $48.1 mil Mainboard offering
Tata Capital, which had nearly 1,500 branches as of the end of March, offers loans to individuals and businesses. It plans to use proceeds from the offering to increase its tier-1 capital base to meet future capital requirements, it said in an August filing.
The Reserve Bank of India had instructed large shadow financiers including Tata Capital to list by the end of September to improve transparency in the sector and help mitigate risks, but Tata Capital asked for an extension of a few weeks to better prepare for its share sale, people familiar with the matter said.
Tata Capital posted a profit of 36.6 billion rupees for the year that ended in March, up 16% from the same period the year before. It had gross loans of 2.27 trillion rupees as of March.
Kotak Mahindra Capital Co, Axis Bank, HDFC Bank, ICICI Securities, IIFL Capital Services, SBI Capital Markets and local units of BNP Paribas SA, Citigroup Inc., HSBC Holdings Plc, and JPMorgan Chase & Co are book-running lead managers of the IPO.
