Tata Capital, the financial services arm of the Tata Group, is gearing up for its highly anticipated initial public offering (IPO), estimated to be worth over ₹15,000 crore. According to reports, the company is likely to file its draft papers with the Securities and Exchange Board of India (SEBI) through the confidential pre-filing route by the end of March or early April 2025.
Strategic Move
The confidential pre-filing route, introduced by SEBI in November 2022, allows companies to keep sensitive business details and financial metrics under wraps until a final decision on listing is made. This approach provides issuers with the flexibility to withdraw their IPO plans without disclosing key information, should market conditions prove unfavorable.
IPO Details
The IPO is expected to include a combination of primary and secondary share issues, with Tata Sons and investor IFC likely to pare their stakes. Tata Capital’s board has already approved the plan, which comprises a fresh issue of up to 230 million shares and an offer for sale by existing shareholders. The company has also cleared a rights issue to raise ₹1,504 crore prior to the IPO launch.
Market Impact
Tata Capital’s listing aligns with the Reserve Bank of India’s mandate for “upper layer” non-banking financial companies (NBFCs) to list within three years of notification. The move is expected to strengthen Tata Capital’s position in the financial services sector and attract significant investor interest.
Stay tuned for updates as Tata Capital takes this strategic step toward public listing.
