Tata Capital’s $1.7B IPO Ignites India’s Hottest Listing Frenzy Since Hyundai
This article first appeared on GuruFocus.
Tata Capital began trading in Mumbai with a modest pop, marking India’s biggest IPO of the year and a fresh signal of investor hunger for financial growth stories. The $1.7 billion listingvalued at 155 billion rupeessaw shares rise as much as 2.2% to 333 rupees on debut. Backed by heavyweight anchor investors including Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS), Tata Capital’s debut comes less than a year after Hyundai Motor India’s record $3.3 billion IPO and could reignite optimism in India’s shadow lending space, which has faced pressure in recent quarters.
This listing lands at the heart of what could be a blockbuster week for India’s equity markets. LG Electronics’ Indian arm is set to debut next, with total proceeds from October offerings possibly exceeding $5 billionpoised to make it India’s strongest IPO month on record. Analysts say Tata Capital’s growth story is built on scale and brand depth, supported by nearly 1,500 branches nationwide. Still, brokerages such as Choice Broking view it as a longer-term bet, noting its return on assets trails more established peers even as funding access and demand tailwinds strengthen the sector.
India’s rise as a global listing powerhouse continues to draw foreign capital. The country ranks as the world’s fourth-largest IPO market this year, surpassing $11 billion in proceeds during the first nine months, Bloomberg data show. JM Financial projects Tata Capital’s assets under management could grow at 20% annually through March 2027, assigning a price target of 360 rupeesroughly 10% above its issue price. As domestic liquidity deepens and global funds chase India’s consumer-driven growth, Tata’s debut may be the latest proof that the country’s fundraising engine is still gathering speed.
