Key Highlights:
- IPO includes 47.58 crore shares; 21 crore fresh issue and 26.58 crore OFS.
- Tata Sons to sell 23 crore shares; IFC to offload 3.58 crore shares.
- IPO could be India’s largest financial sector listing, valuing Tata Capital at USD 11 billion.
Mumbai: Tata Capital, a leading non-banking financial company (NBFC) backed by Tata Sons, has taken a major step toward its stock market debut. The company filed updated draft papers with the Securities and Exchange Board of India (Sebi) for its Initial Public Offering (IPO), which could raise up to USD 2 billion.
The IPO is a mix of fresh equity shares and an Offer For Sale (OFS). According to the updated Draft Red Herring Prospectus (DRHP) filed on Monday, the offering will include 47.58 crore equity shares. This consists of a fresh issue of 21 crore shares and an OFS of 26.58 crore shares.
Tata Sons and IFC to Sell Shares in OFS
In the OFS portion of the IPO, Tata Capital’s parent company Tata Sons will sell 23 crore shares, while the International Finance Corporation (IFC) will offload 3.58 crore shares. This will allow investors to buy shares directly from existing stakeholders.
The fresh issue will help the company strengthen its Tier-1 capital base. This extra capital will be used for future growth, lending, and expansion of its financial services.
In Line with RBI Listing Mandate
Tata Capital’s IPO comes in response to a Reserve Bank of India (RBI) rule. The company was classified as an upper-layer NBFC in September 2022. As per RBI regulations, such NBFCs must list on stock exchanges within three years of receiving that status.
This IPO follows Tata Technologies' market debut in November 2023, making it the Tata Group’s second public listing in recent years.
Strong Financial Growth
For the financial year 2024–25, Tata Capital reported a profit after tax (PAT) of Rs 3,655 crore, up from Rs 3,327 crore in FY24. Its revenues also jumped to Rs 28,313 crore from Rs 18,175 crore the previous year, showing strong growth.
IPO Managed by Top Banks
The IPO is being handled by a group of major investment banks and financial institutions. These include Axis Capital, Kotak Mahindra Capital, HDFC Bank, JP Morgan India, and others.
If all goes as planned, Tata Capital’s IPO could become the largest-ever initial share sale in India’s financial sector, further strengthening the Tata Group’s presence in public markets.
(With PTI Inputs)
