Tata Capital IPO: Fresh Issue Of Up To 21 Crore Shares — Details Here

A month after Tata Capital Ltd. got the Indian market regulator, SEBI's, go-ahead for making its market debut, the non-banking financial company is in the process of filing its updated draft papers for the mandatory listing, according to people in the know.

People in the know have told NDTV Profit that the non-banking financial company's offer will see Tata Sons Pvt. selling up to 23 crore shares, while International Finance Corp. will be looking to offload another 3.58 crore shares. The company will also issue up to 21 crore shares via a primary raise.

Currently, Tata Sons owns an 88.6% stake in the NBFC on a fully diluted basis, while other Tata group companies own another 7%.

IFC currently holds 7.16 crore shares worth a 1.8% stake in the firm.

It is understood that Tata Capital proposes to use the fresh issue proceeds for augmenting its tier–I capital base to meet its "future capital requirements, including onward lending," arising out of the growth of the business.

Further, a portion of the proceeds from the Fresh Issue will be used towards meeting offer expenses. 

It is further learnt that Kotak Mahindra Capital Co., Axis Capital Ltd., BNP Paribas, Citigroup Global Markets India Pvt. and HDFC Bank Ltd. are the book running lead managers for the issue.

Tata Capital plans no pre-IPO placement ahead of its market debut.

Last month, Tata Capital's board approved fundraising via a rights issue to raise up to Rs 1,752 crore, and up to Rs 30,000 crore via bonds. Before that, the company raised Rs 1,500 crore via a rights issue in late February. Tata Sons subscribed to its entire entitlement, while other small shareholders, including the International Finance Corp., also participated. The company said it planned to use the proceeds for further lending and improving its leverage ratios.

Tata Capital said that it has no requirement to make firm arrangements of finance through verifiable means towards at least 75% of the stated means of finance. This will exclude the amount to be raised from the fresh issue and existing identifiable accruals as required under SEBI regulations.

NDTV Profit had reported last month that Tata Capital's confidentially filed draft papers had been approved by the country's market regulator. The financial services arm of the Tata Group had long been preparing for a public listing, with plans to file preliminary papers with the markets regulator after receiving the National Company Law Tribunal's nod for a merger with Tata Motors Finance.

Once the listing goes through, Tata Capital will be the 17th Tata Group company to be publicly traded. For fiscal 2025, the Tatas' financial services arm reported a profit of Rs 3,655 crore, an increase from Rs 3,327 crore in the previous fiscal, while its revenue surged to Rs 28,313 crore from Rs 18,175 crore.