Tata Capital earns a $16-billion valuation before IPO, International Finance Corporation poised for lucrative gains
Tata Capital Prepares for $16 Billion IPO, Bluestone Jewellery Reduces IPO Size
In a significant move for the Indian financial sector, Tata Capital, the financial services arm of the Tata Group, is gearing up for an initial public offering (IPO) by September 2025. This will be the Tata Group’s second public listing in about two years, following Tata Technologies’ IPO in 2023.
The IPO is driven largely by regulatory requirements, as the Reserve Bank of India (RBI) mandates that upper-layer Non-Banking Financial Companies (NBFCs) like Tata Capital must list by September 2025 under its Scale-Based Regulation framework.
The IPO offer includes a fresh issue of up to 230 million equity shares and an Offer For Sale (OFS) by existing shareholders. The funds raised will primarily be used to augment Tata Capital’s Tier-I capital base, supporting future lending operations and growth within the competitive NBFC sector.
As of March 2025, Tata Capital had a loan book of approximately ₹2.2 lakh crore, with a significant 62% of loans given to individuals. It reported a net profit of ₹3,665 crore for the fiscal year ending March 2025, about a 16% increase compared to the previous year.
Market sources indicate Tata Capital’s IPO valuation is around $16 billion (approximately ₹1.3 lakh crore), aligning with the price band anticipated to be between ₹375 and ₹400 per share.
Meanwhile, another notable development comes from Bluestone Jewellery, which is reducing the size of its IPO. Several investors face potential paper losses as a result of this move. However, the specific details of this IPO are not discussed in this article.
Tata Capital is not the only financial institution planning an IPO. Renee Cosmetics, a cosmetics company, recently raised $30 million in its Series C round, with Playbook Partners leading the investment. However, the specific investors involved in this round are not mentioned.
Tata Capital houses two private equity fund platforms-Tata Capital Growth and Tata Capital Healthcare. These platforms are not part of the upcoming IPO.
The proposed IPO of Tata Capital is expected to attract significant investor interest given Tata Group’s strong reputation and the financial firm’s scale. It is seen as a significant event, reflecting regulatory compliance, strategic capital raising for growth, and a robust market valuation of about $16 billion.
In conclusion, the Indian financial sector is witnessing two significant events: Tata Capital's IPO, which could provide a "neat harvest" for investors, and Bluestone Jewellery's IPO reduction, which has led to potential paper losses for several investors.
The proposed IPO of Tata Capital, with a valuation of around $16 billion, aims to augment its Tier-I capital base, supporting future lending operations and growth within the competitive Non-Banking Financial Companies (NBFC) sector.
Tata Capital's IPO, expected to attract significant investor interest, is seen as a significant event reflecting regulatory compliance, strategic capital raising for growth, and a robust market valuation of about $16 billion.
