Tata Capital Launches ₹1.55 Lakh Crore IPO India’s Biggest in 2025

Tata Capital Ltd. launched its highly anticipated initial public offering (IPO) on Monday, aiming to raise up to 155 billion rupees ($1.7 billion), marking it as India’s biggest listing in 2025. The offering, which opened for subscription and will run until Wednesday, is poised to set a new benchmark in a sizzling Indian IPO market projected to surpass $5 billion in proceeds this October alone. With shares priced between 310 and 326 rupees, the financial services arm of the Tata Group could achieve a valuation of 1.4 trillion rupees ($15.7 billion), dwarfing competitors like HDB Financial Services Ltd., which went public earlier this year.

The IPO frenzy underscores growing investor confidence in India’s financial markets, even amidst a challenging year for the local stock exchange. Following Tata Capital’s debut, LG Electronics India is set to launch another billion-dollar IPO, signaling robust demand for large issuances. “The market has ample capacity to absorb supply,” said Raghuram K, a partner at Uniqus Consultech. He noted that mutual funds, flush with cash from monthly investment plans, are eagerly deploying capital, fueling the IPO boom. By 10:30 am in Mumbai, Tata Capital’s IPO had already attracted bids for 9% of the 475.8 million new and existing shares offered by the company, its parent, and the International Finance Corp.

Tata Capital’s IPO has drawn significant interest from heavyweight investors, with the company raising 46.4 billion rupees ($523 million) from anchor investors like Morgan Stanley, Goldman Sachs, Nomura Holdings, and Life Insurance Corp. of India. This strong backing highlights the appeal of Tata Capital, a key player in the Tata Group, one of India’s most trusted conglomerates. Incorporated in 2007, the company serves 73 million customers with a diverse portfolio of financial products for retail, corporate, and institutional clients, managing assets worth 2.33 trillion rupees as of June 2025.

Also Read: Major Sebi Board Meeting May Reshape IPO, FPI Rules

Analysts are optimistic about Tata Capital’s prospects, citing its resilient business model and diversified asset mix. ICICI Direct Research praised the company’s focus on sustained growth, while SBI Securities noted that at the upper price range of 326 rupees, the shares are valued at 3.4 times book value—making Tata Capital a compelling investment compared to peers like Bajaj Finance Ltd. and Cholamandalam Investment and Finance Co. The IPO’s success is expected to further cement India’s position as a global IPO powerhouse, with 2025 proceeds already reaching $11.2 billion by the end of the third quarter, ranking India as the world’s fourth-busiest IPO market.

The broader IPO surge reflects India’s dynamic economic growth and the rising ambitions of its corporate sector. Despite a slowdown in the stock market in 2025, driven by concerns over earnings growth and US-India tensions, retail investors with growing incomes continue to fuel demand for new listings. Regulatory changes have also boosted optimism, with India’s securities regulator easing rules for large private firms to go public and the central bank relaxing loan restrictions for IPO investors. With top financial institutions like JPMorgan Chase & Co. and Kotak Mahindra Capital Co. predicting the boom will continue, Tata Capital’s blockbuster IPO is set to lead India’s charge toward a record-breaking year for public offerings.

Also Read: Basava Campaign 2025 Revives Lingayat Demand for Distinct Religious Identity