Tata Capital's Mega IPO Plan

Tata Capital, the financial services arm of the renowned Tata Group, has taken a significant step towards launching a massive initial public offering (IPO) by filing updated draft papers with Sebi. The IPO, estimated at $2 billion (Rs 17,200 crore), is set to value the company at an impressive $11 billion.

Details of the Public Issue

The proposed public issue includes a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares. Tata Sons plans to divest 23 crore shares, with the International Finance Corporation (IFC) selling 3.58 crore shares. Currently, Tata Sons holds an 88.6% stake in Tata Capital, while IFC owns 1.8%.

Utilization of Proceeds

The proceeds from the fresh issue are earmarked for strengthening Tata Capital’s Tier-1 capital base, which will support its future capital requirements, including onward lending activities.

A Strategic Move in Compliance with RBI's Mandate

This IPO aligns with the Reserve Bank of India’s listing requirements for upper-layer NBFCs, necessitating public listings within three years of classification. Tata Capital was designated as such in September 2022.

Financial Performance and Growth

In FY25, Tata Capital reported a net profit of Rs 3,655 crore, up from Rs 3,327 crore in FY24, with revenues soaring to Rs 28,313 crore from Rs 18,175 crore the previous year.

About Tata Capital

Since its inception in 2007, Tata Capital has served over 7 million customers with a diverse portfolio of more than 25 lending products for individuals, SMEs, and corporates, alongside distributing third-party financial products and managing private equity funds.

Leading the Charge

A consortium of top financial institutions, including Axis Capital and Kotak Mahindra Capital, are managing the issue, marking a significant milestone in India's financial services sector.