**Tata Capital Eyes Valuation of $16.5 Billion for Its $1.85 Billion IPO**
*By Dwaipayan Roy | Sep 23, 2025, 08:03 PM*
Tata Capital, the financial services arm of Tata Group, is preparing for a major 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 familiar with the matter, as reported by Moneycontrol.
### IPO Launch Details
The IPO is expected to open for public subscription on October 6, following an anchor investor allocation likely set for October 3. The total size of the IPO, which includes a fresh issue of shares plus an offer for sale by Tata Sons and the International Finance Corporation (IFC), is pegged at around $1.85 billion (nearly ₹16,400 crore).
Notably, the Life Insurance Corporation of India (LIC) is expected to be a major investor in this issue.
### Fund Utilization
Proceeds from the IPO will primarily be used to strengthen Tata Capital’s Tier-I capital base. This capital infusion will support future capital requirements, including onward lending operations.
For this significant offering, Tata Capital has appointed prominent legal counsels, including Cyril Amarchand Mangaldas, AZB & Partners, and Latham & Watkins.
### Business Overview
Tata Capital, classified as an upper-layer Non-Banking Financial Company (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 provides a diverse portfolio of more than 25 lending products catering to salaried and self-employed individuals, entrepreneurs, small businesses, SMEs, and corporates. In addition, Tata Capital distributes third-party financial products such as insurance and credit cards.
As of March 31, 2025, retail and SME customers represent 88.5% of Tata Capital’s total gross loans. The company operates a pan-India distribution network with nearly 1,500 branches.
### Market Outlook
Despite the challenging market conditions recently faced by NBFC listings, Tata Capital remains optimistic about its upcoming IPO and potential growth trajectory.
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*Stay tuned for updates on Tata Capital’s IPO and other financial market news.*
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