Tata Capital targets $16.5 bn valuation for its $1.85-bn IPO; early October launch on cards

Tata Capital plans $1.85 bn IPO at $16.5 bn valuation in early October.

Expert Analysis:

• IPO Valuation Target: Tata Group aims for a post-money equity valuation of $16.5 billion for Tata Capital’s IPO, expected in early October

• Company Profile and Valuation: Tata Capital, an NBFC and subsidiary of Tata Sons, is targeting a listing valuation of $16.5 billion (Rs 146,000 crore)..

• Regulatory Requirement: RBI mandates upper-layer NBFCs like Tata Capital to list by September 30, but the firm obtained a minor extension.

• IPO Timeline: Anchor portion is planned for October 3, with public subscription between October 6–8, though dates may change unexpectedly.

• IPO Size: The combined IPO, including fresh shares and OFS by Tata Sons and IFC, is pegged at $1.85 billion (Rs 16,400 crore).

• Investor Interest: Insurance giant LIC is expected to make a significant investment in the IPO.

• Stakeholder Comments: Tata Sons and LIC did not respond to queries at the time of publication; Tata Capital’s immediate comment was also unavailable.