Tata Capital IPO: Tata Group’s Financial Arm Files DRHP For Rs 15,000 Crore Market Debut

Tata Capital IPO: Financial Services Arm of Tata Group, Tata Capital, has reportedly submitted a 'pre-filed draft red herring prospectus' (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) worth Rs 15,000 crore, reported Moneycontrol citing sources on Saturday.

If Tata Capital brings its IPO in the stock market this year, then it could become one of the biggest debut listings of India in 2025. Earlier, it was reported that the company had approached the market watchdog to opt for a confidential filing route.

A company opts for a confidential filing route for IPO by submitting a 'pre-filed DRHP' to SEBI. Under this route, the company doesn't need to make its IPO details public, and hence they can get freedom to explore the IPO option while protecting sensitive details and get better flexibility related to the timing of the public offering and other details.

Tata Capital IPO: Tata Sons, IFC To Reduce Stake

Tata Capital IPO will be a mix of combination of primary and secondary issue of shares with Tata Sons and investor IFC reducing their stake, as per the report.

"The draft papers have been filed with the market regulator through the confidential pre-filing route. The issue will be a combination of the primary and secondary issue of shares, Tata Sons and investor IFC will pare stake, with greater participation from the former," Moneycontrol quoted a source familiar with the matter.

The development has come nearly two months after the Tata Capital board greenlit its IPO plan, which will include a fresh issue of up to 230 million shares and an offer for sale of equity shares by existing shareholders. At that time, the company had also added that Tata Capital IPO timing and other details will remain unchanged subject to market conditions and regulatory clearances.

Before Tata Capital, several other major firms, including Oyo, Swiggy, Vishal Mega Mart, Tata Play, Oyo, PhyscsWallah, etc had opted for a confidential route for IPO listing.

All About Tata Capital IPO

The Financial services arm of the steel-to-salt conglomerate Tata Group is aiming for a stellar market debut with a valuation of around $11 billion, reported news agency PTI in March. Tata Capital IPO will be finalised after getting final nod from the National Company Law Tribunal (NCLT) for Tata Motors Finance merger with the company.
The final order from NCLT was scheduled to be received by the company before the conclusion of financial year 2024-25 (FY25). The proposed IPO of Tata Capital, an upper-layer non-banking finance company (NBFC), would comprise 2.3 crore equity shares by way of a fresh issue and an offer of sale (OFS) by certain existing shareholders, reported PTI citing a disclosure made to stock exchanges.

Tata Capital is also planning to raise funds through a rights issue to further boost its financial position before IPO listing. Tata Capital IPO is Tata Group's second public market debut in recent years after the listing of Tata Technologies in November 2023.

The move is part of the company's effort to comply with the RBI's listing requirements. As per the RBI mandate, upper-layer NBFCs are required to list on the stock exchange within three years of being designated as an upper-layer NBFC. Tata Capital was categorised as an upper-layer NBFC in September 2022.

As per PTI report, law firm Cyril Amarchand Mangaldas and investment bank Kotak Mahindra Capital were approached to manage Tata Capital IPO, however, there is no official confirmation about the same till now.