Tata Capital designates co-leader for cross-sector private equity fund
In the rapidly evolving world of private equity, Tata Capital Ltd, a non-banking financial services unit of the Tata Group, is making significant strides. The Mumbai-based company is gearing up to raise its third flagship private equity fund, as revealed by the latest news.
To spearhead this upcoming fundraise, Tata Capital has appointed a co-head for its sector-agnostic private equity fund. This move underscores the company's commitment to expanding its private equity investments. Tata Capital's private equity unit has a rich history, having previously raised six private equity funds, along with several co-investment and feeder funds.
Meanwhile, Tata Capital as a whole is preparing for a major financial move. The company is planning an Initial Public Offering (IPO) for September 2025, which is expected to be among the largest in India’s financial services sector this year. Before the IPO, Tata Capital plans to raise Rs 1,752 crore through a rights issue. Tata Sons, the principal investment arm of the Tata Group, is set to subscribe to the majority portion of this rights issue. The IPO itself has received approval from the Securities and Exchange Board of India (SEBI) for a Rs 17,200 crore offering, reflecting strong backing from the Tata Group.
Furthermore, Tata Capital's board has approved raising up to Rs 30,000 crore through various debt instruments to support its on-lending businesses and growth initiatives.
In the broader context, Tata Capital is being mentioned alongside other significant entities such as Hisense, Epack Durable, and Coforge. The company's private equity arm has been a subject of interest in various news sources, including Grapevine.
In conclusion, Tata Capital Ltd's private equity arm is progressing with leadership appointments and preparations for raising its third flagship fund, complementing the broader financial strengthening and IPO plans of the parent company. This strategic move is set to further solidify Tata Capital's position in the private equity landscape.
Tata Capital's private equity arm is not only making significant strides in the upcoming fundraise for its third flagship fund but is also expanding its investments in business and finance, as indicated by the appointment of a co-head for its sector-agnostic private equity fund. After receiving approval from the Securities and Exchange Board of India (SEBI) for a Rs 17,200 crore Initial Public Offering (IPO) in September 2025, Tata Capital is planning to raise additional funds through various debt instruments up to Rs 30,000 crore, indicating its intent to further solidify its position in the private equity landscape and invest in various business and investing opportunities.
