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The International Finance Corporation (IFC), the private sector arm of the World Bank Group, is set to earn substantial returns from Tata Capital’s upcoming Rs17,000 crore ($2 billion) initial public offering. IFC will offload 3.58 crore shares in the offer, partially exiting its 2011 investment in Tata Cleantech Capital Ltd (TCCL), which was later merged with Tata Capital.
IFC had entered at an adjusted price of Rs25 per share, valuing its total investment at Rs179 crore. At the rights issue price of Rs343 per share, its stake is now worth approximately Rs2,458 crore—translating into a notional gain of Rs2,278 crore, or nearly 13x returns. The IPO price is expected to be higher, potentially boosting IFC’s gains further.
Tata Capital’s IPO, expected to launch in the first half of October, includes a fresh issue of up to 21 crore shares and an offer for sale of 26.58 crore shares—23 crore from promoter Tata Sons and 3.58 crore from IFC. Tata Sons currently holds 88.6% of the NBFC.
The proceeds from the fresh issue will be used to strengthen Tier-I capital and support lending growth. The IPO follows the Reserve Bank of India’s mandate requiring upper-layer NBFCs to list within three years of classification. Tata Capital was designated as such in September 2022.
IFC’s partnership with Tata Capital began in 2011 to finance renewable infrastructure through TCCL, which has since backed over 500 projects across solar, wind, biomass, hydro, water treatment, and electric mobility. By FY25, the cleantech loan book had crossed Rs18,000 crore, growing at a CAGR of 32% over two years.
If successful, this IPO will be the largest public issue in India’s financial sector and the Tata Group’s second major listing in recent years, following Tata Technologies’ debut in November 2023.
