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Tata Capital Ltd. is poised to start taking orders for an initial public offering that may raise as much as 155 billion rupees ($1.7 billion), India’s biggest deal of its kind this year, and putting the country’s hot IPO market on course for a record month.
The shadow lender’s shares, which are expected to start trading on Oct. 13, are being offered at 310 rupees to 326 rupees each until Wednesday, valuing the company at as high as 1.4 trillion rupees ($15.7 billion). That would make the unit of the Tata Group worth more than double HDB Financial Services Ltd., which went public earlier this year.
Tata’s offering will be followed by LG Electronics Inc.’s Indian unit in another billion-dollar IPO launch the next day, a sign that confidence is growing about investor demand being able to absorb such large issuances despite the headwinds faced by the local stock market. All in all, Indian IPO proceeds could climb to a record in October, exceeding $5 billion.
“There is now ample capacity to absorb supply,” said Raghuram K, a partner at Uniqus Consultech. Mutual funds are awash with money flowing in through monthly investment plans, giving them the confidence to keep deploying capital, he said.
As for Tata’s offering, it will involve the sale of as many as 475.8 million new and existing shares by Tata Capital, its parent and International Finance Corp., according to the IPO prospectus.
For investors, the Tata Capital deal is a chance to own shares in the financial services unit of one of India’s largest and most-reputed conglomerates — the Tata Group — and it is set to be the nation’s biggest IPO since Hyundai Motor India Ltd.’s record $3.3 billion offering last year.
The company, incorporated in 2007, offers a range of financial products and services to retail, corporate and institutional clients. Its assets under management stood at 2.33 trillion rupees as of June 2025, catering to 73 million customers.
Tata Capital looks attractive because the company offers a resilient business model with a focus on sustained growth, supported by a diversified asset mix, ICICI Direct Research wrote in a note to clients.
At the high end of their marketed range, Tata Capital shares could still be a bargain at 3.4 times book value, according to SBI Securities. That would make it cheaper than peers such as Bajaj Finance Ltd., Cholamandalam Investment and Finance Co. and HDB Financial Services Ltd., according to data compiled by Bloomberg.
In fact, Tata Capital shares were recently trading at more than double the high end of their marketed range in the unlisted market, according to InCred Money.
More broadly, the IPO rush has been powered by rising corporate ambitions in one of the world’s fastest-growing major economies, a strong pool of domestic capital and a seemingly insatiable appetite for new listings among millions of retail investors with rising incomes.
Companies have been able to raise money even as India’s stock market has lost momentum in 2025 after an unprecedented nine-year rally, weighed down by concerns over a slowdown in earnings growth as well as US-India tensions.
With 2025 proceeds at $11.2 billion as the third quarter ended, India emerged as the world’s fourth-busiest IPO market this year based on fundraising volume, according to data compiled by Bloomberg. That follows last year’s record tally of $21 billion.
JPMorgan Chase & Co., JM Financial Ltd. and Kotak Mahindra Capital Co. are among those who have predicted the boom to continue, with regulatory changes also adding to the optimism. India’s securities regulator last month tweaked norms to make it easier for very large private firms to go public, while the central bank recently relaxed rules on loans to investors participating in IPOs.
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