Tata Capital Ltd has received approval from India's market regulator to move forward with its plans for an initial public offering that could raise approximately $2 billion (RM8.51 billion), as per sources familiar with the situation.

This is anticipated to be the largest listing in the country for this year.

The Securities and Exchange Board of India has communicated this approval to the company and its banking partners, according to unnamed sources as the details are confidential.

The finance subsidiary of Tata Group intends to begin the share sale possibly in August.

This approval allows the company to incorporate the regulator's feedback into its prospectus prior to initiating the marketing of the offering.

This development occurs as India’s market for fresh listings shows indications of recovery, with HDB Financial Services Ltd planning to roll out a stock offering exceeding a billion dollars on Wednesday.

The Tata Group is aiming for a valuation of as much as $11 billion for its financial services subsidiary.

 

The Tata Capital IPO is expected to represent one of the largest public offerings in India’s financial services sector.

Also Read: Inspirational Quotes from 5 Indian Business Legends

The Tata Capital IPO will include a mix of new share issuance and an offer for sale (OFS) from Tata Sons, which currently owns a 93% stake in the non-banking financial company (NBFC).

According to reports, Tata Group is pursuing a valuation of up to $11 billion for Tata Capital, which could become the largest IPO in India this year.

As per the Reserve Bank of India’s (RBI) regulations, both Tata Sons and Tata Capital are categorized as 'upper-layer' NBFCs, necessitating them to go public by September 2025. This classification imposes more stringent regulatory scrutiny and mandates a public listing within a three-year timeframe.

Additionally, Paisabazaar has launched a new product—Loan Against Car—to enhance its secured lending offerings. The company has partnered with lenders including HDFC Bank and Tata Capital to provide this service.

The digital credit platform announced that this loan will offer up to 200 percent of the vehicle's value, with repayment terms extending for up to five years. The entire process will be conducted online.

Also Read: The CFO Story S24: How CFOs Are Harnessing Innovation

This new offering is designed to enhance access to credit for consumers with restricted borrowing options from conventional sources. It also aligns with Paisabazaar’s goal of strengthening its presence in secured loan categories such as home loans and loans against property.