Tata Capital Ltd., the financial services arm of the Tata Group, is preparing for an initial public offering (IPO) in the first half of October, Bloomberg reported, after requesting a short extension from the Reserve Bank of India (RBI) for its planned launch.
Sources familiar with the matter told Bloomberg that Tata Capital could conclude its IPO roadshows this week and file a second draft red herring prospectus shortly. The sources requested anonymity due to the private nature of the proceedings.
The RBI had previously instructed major shadow financiers, including Tata Capital, to go public by the end of September in an effort to improve transparency in the sector and mitigate systemic risks. Tata Capital requested a brief extension of a few weeks to better prepare for the share sale, which the RBI approved, Bloomberg reported.
Representatives for Tata Capital and the RBI did not immediately respond to requests for comment.
Tata Capital is reportedly targeting to raise up to 170 billion rupees ($1.9 billion) at a valuation of approximately $18 billion, which would make it India’s largest IPO since Hyundai Motor India Ltd.’s record $3.3 billion offering last year, according to Bloomberg.
The move comes amid a surge of high-profile IPOs in India. Past major offerings include Life Insurance Corp., One 97 Communications, and Coal India, reflecting strong investor appetite for large-scale listings in the country.
