Tata Capital plans $2B fundraiser via IPO, eyes $11B valuation
What's the story
Tata Group is said to be eyeing a valuation of as much as $11 billion for its financial services arm, Tata Capital Ltd, in a possible initial public offering (IPO).
Insiders familiar with the matter told Bloomberg that the move could make it India's largest IPO of the year.
The company is reportedly preparing for an IPO that could raise as much as $2 billion.
Approval
Board approves share listing
Tata Capital's board has approved the listing of up to 230 million stocks, along with an offer for sale of equity by existing shareholders.
The firm also announced a rights issue amounting to $172 million.
However, these discussions are still ongoing and details may change in the future.
Tata Group has not yet commented on this development.
Market trends
IPO market is very active
Despite a recent downturn in stocks, India's IPO market continues to thrive.
LG Electronics India and Prudential Plc are also planning to list this year, potentially raising $1.5 billion and $1 billion respectively for their Indian unit.
Last year, Hyundai Motor India Ltd. set a record by raising $3.3 billion through its IPO.
Company profile
Tata Capital's role in India's financial landscape
Tata Capital is a non-banking financial institution or shadow bank that lends to customers with limited access to traditional banking services.
The firm has more than 900 branches across India and is headquartered in Mumbai.
Tata Capital has started working on the IPO which would be a mix of primary and secondary issuance of shares.