Tata Capital is set to launch its much-awaited USD 2 billion (over Rs 17000 crore) initial public offering (IPO) in the first half of October after the Reserve Bank of India’s (RBI) decision to extend its deadline for listing reported PTI. The non-banking finance company was earlier required to list by September 30. Through its maiden public issue Tata Capital aims to raise USD 2 billion at a valuation of about USD 18 billion a significant increase from the USD 11 billion valuation it was assigned when it filed confidential IPO papers in April. Tata Capital IPO In October? Tata Capitals offering would be the biggest in the country after Hyundai Motor Indias USD 3.3 billion (Rs 27870 crore) IPO in October 2024. While the RBI had given a timeline of September 30 it has allowed for an extension due to procedural reasons people familiar with the matter told PTI. Market observers noted that large IPOs often see such extensions. For instance NSDLs Rs 4000-crore IPO was given an extension from Sebi by over four months before the offering finally opened in July. As per the updated Draft Red Herring Prospectus (DRHP) filed in August the IPO will comprise a fresh issue of up to 21 crore equity shares and an offer for sale (OFS) of up to 26.58 crore shares totalling 47.58 crore shares. Promoter Tata Sons will divest up to 23 crore shares while International Finance Corporation (IFC) will offload up to 3.58 crore shares. Tata Sons owns 88.6 per cent of Tata Capital with IFC holding 1.8 per cent. Proceeds from the fresh issue will be utilised to augment Tier-I capital and fuel lending growth. Tata Capital IPO: One Of Largest In Country?  If it receives good response the IPO may become the largest public issue in Indias financial sector. It will also become the Tata Groups second public listing in recent years after the debut of Tata Technologies in November 2023. The IPO is being undertaken in line with the RBIs listing mandate for upper-layer NBFCs which requires them to be listed within three years of classification. Tata Capital was designated as an upper-layer NBFC in September 2022. Earlier HDB Financial Services the non-banking arm of HDFC Bank also went public in June with a Rs 12500 crore issue. Bajaj Housing Finance another upper-layer NBFC made a blockbuster market debut in September 2024 closing its first day of trade with a 135 per cent premium over the issue price. (With Inputs From PTI)