Tata Capital, the financial services arm of the Tata Group, has filed draft papers with SEBI for a ₹15,000 crore IPO using the confidential pre-filing route. This move aligns with the Reserve Bank of India’s mandate requiring “upper-layer” non-banking financial companies (NBFCs) to go public within three years of being designated as such. Tata Capital was categorized as an upper-layer NBFC in September 2022.
The IPO will include both primary and secondary share offerings, with Tata Sons and the International Finance Corporation (IFC) planning to pare their stakes. Tata Sons has engaged top financial institutions, including Kotak Mahindra Capital, Citi, JP Morgan, and others, to manage the offering. The IPO is expected to consist of 2.3 crore equity shares through a fresh issue and an offer for sale by existing shareholders.
Ahead of the IPO, Tata Capital has also announced plans to raise funds through a rights issue to strengthen its financial position. The company is awaiting final approval from the National Company Law Tribunal (NCLT) for the proposed merger of Tata Motors Finance with Tata Capital, which is expected to be completed by the end of FY25. This merger is seen as a key step in the IPO process.
The confidential pre-filing route, introduced by SEBI in November 2022, allows companies to protect sensitive business details while deciding whether to proceed with the IPO. If successful, this IPO will be one of the largest in India’s financial sector. Tata Capital’s move reflects the Tata Group’s strategy to expand its presence in the financial services market while complying with regulatory requirements.
