Tata Capital Ltd. is preparing for an initial public offering in the first half of October after asking the Reserve Bank of India for a short extension to the launch timetable, according to people familiar with the matter.
The financial services company, part of the Tata Group, could wrap up IPO roadshows this week and file a second draft red herring prospectus soon, the people said, asking not to be identified because the process is private.
The RBI has instructed large shadow financiers including Tata Capital to list by the end of September to improve transparency in the sector and help mitigate risks, but Tata Capital asked for an extension of a few weeks to better prepare for its share sale, the people said. The RBI approved the request, they said.
Representatives for Tata Capital and the RBI didn’t respond to requests for comment.
Tata Capital is looking to raise as much as 170 billion rupees ($1.9 billion) at a valuation of about $18 billion in the IPO, which would make it the biggest in India since Hyundai Motor India Ltd.’s record $3.3 billion offering last year.
Tata Investment Corp., a shareholder in Tata Capital, rose as much as 3.2 per cent in Mumbai early Thursday afternoon, its biggest intraday gain since Aug. 5.
More stories like this are available on