Tata Capital's highly anticipated $2 billion (approximately Rs 17,200 crore) initial public offering is on the verge of receiving final clearance from the Securities and Exchange Board of India, according to people in the know.
The IPO proposal has reached the SEBI Chairperson for final approval, a step typically reserved for offerings of this significant size.
This imminent green light is crucial for Tata Capital, as it will enable the company to list its shares before the Reserve Bank of India's September deadline for 'upper layer' Non-Banking Financial Companies.
The draft IPO papers were filed confidentially in April, meaning key details of the offering have remained undisclosed to the public, pending SEBI's formal approval.
Once listed, Tata Capital would become the 17th company from the Tata Group to trade on the stock exchanges.
Tata Capital also secured Rs 1,500 crore through a rights issue in late February. Tata Sons, the company’s majority owner with a 93% stake, fully subscribed to its share of the issue. Other minority investors, such as the International Finance Corporation, also took part. The capital raised is intended to support additional lending activities and strengthen the firm’s leverage position.
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