Tata Capital is Tata Capital is looking to raise $2.2 billion via fresh issue in its IPO, which could be launched in the first half of September. This is as per a Bloomberg report. The report goes on to elaborate that the company is seeking a higher valuation for its Initial Public Offering (IPO).
Tata Capital is looking to raise valuation to $18 billion to $20 billion from the previous $11 billion, says a Bloomberg report. Furthermore, the report adds that the Tata Group company could file the updated Draft Red Herring Prospectus (DRHP) sometime this week. The primary reason for an increase in the company’s valuation is the success of the recent rights issue and a good response to the IPOs of the other finance companies in recent months.
Particularly, the positive response to the IPO of HDB Financial Services, which raised about $1.5 billion, is the key motivation for raising the IPO value for Tata Capita.
When will the Tata Capital IPO open?
According to Bloomberg, Tata Capital IPO could be launched in the first half of September.
Earlier in April, Tata Capital filed the confidential IPO papers with SEBI and received approval in June. As per the SEBI regulations, the company is required to file an updated DRHP for public feedback.
How does Tata Capital’s valuation compare with competitors?
With the upgraded valuation of $18 -20 billion, Tata Capital will become the 4th highest valued financial services company in India. Bajaj Finance is the most valuable company in the segment, having a valuation of $69 billion.
Bajaj Finserv and Jio Financial are the second and third largest companies in the segment, with valuations of $38 billion and $23 billion, respectively.
HDB Financial Services was valued at $7.7 billion in its IPO earlier last month. The stock of the company listed with as much as 14% premium on its listing day.