Tata Capital eyes US$11b valuation in India IPO
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The news: Tata Group is seeking a valuation of as much as USD11 billion ($17.62 billion) for its financial services unit, Tata Capital, in what could be India’s biggest initial public offering this year, Bloomberg reported citing unnamed sources.
The IPO could reportedly raise as much as USD2 billion, but the details of the IPO could still change. Tata Capital’s board last week approved the listing of as many as 230 million shares, along with an offer for sale of equity by existing shareholders.
It also announced a rights issue of as much as 15.04 billion rupees.
The context: Tata Capital is a non-bank financial institution, also known as a shadow bank, which provides loans to customers with limited or no access to traditional banking.
The IPO market in India is defying a recent stock slump, with LG Electronics India reportedly planning a USD1.5 billion IPO and Prudential Plc hiring banks for a potential USD1 billion listing.
Tata representatives did not respond to requests for comment from Bloomberg.
The source: Bloomberg
