Tata Capital Set to Break IPO Records with USD 2 Billion Listing

Tata Capital is poised to launch its eagerly awaited USD 2 billion initial public offering (IPO) in the first half of October. The Reserve Bank of India (RBI) has granted an extension for the listing, which was initially scheduled for the end of September, sources familiar with the situation disclosed.

The non-banking finance company aims to achieve a significant valuation boost, targeting USD 18 billion. This marks a substantial increase from the USD 11 billion valuation set during their confidential IPO filing in April. If successful, Tata Capital's public offering will become the largest in India's financial sector history.

Tata Capital's IPO will include a fresh issue of 21 crore equity shares and an offer for sale of up to 26.58 crore shares, amounting to 47.58 crore total shares. The funds raised will be used to enhance Tier-I capital and support lending expansion, meeting the RBI's requirements for listing upper-layer NBFCs within three years of classification.

(With inputs from agencies.)