Tata Capital IPO Gets Approval At EGM
The company also approved increased investment limits for NRIs, OCIs.
Tata Capital Ltd.'s extraordinary general meeting approved on Thursday the company's initial public offering of equity shares, with the resolution passing by the requisite majority.
The proposal secured 367.9 crore votes in favour from 230 members, while 361 votes were cast against it by eight members, according to an exchange filing.
Once Tata Capital enters the stock market, it will become the 17th Tata Group company to be publicly traded.
In addition to the IPO approval, the EGM also cleared an increase in investment limits for non-resident Indians and overseas citizens of India. An amendment to the company’s Employee Stock Option Scheme was also approved.
The financial services arm of the Tata Group has been preparing for a public listing, with plans to file preliminary IPO papers with the Securities and Exchange Board of India after receiving final approval from the National Company Law Tribunal for the merger of Tata Motors Finance with the company.
Sources told PTI that the IPO could raise around $2 billion (over Rs 17,000 crore), valuing Tata Capital at approximately $11 billion. The IPO is expected to comprise a fresh issue of 2.3 crore equity shares and an offer-for-sale by certain existing shareholders.
Ahead of its planned listing, Tata Capital raised Rs 1,500 crore via a rights issue on Monday. Tata Sons, which holds a 93% stake in the company, subscribed to its entire entitlement, while other small shareholders, including the International Finance Corp., also participated. The company plans to use the proceeds for further lending and improving its leverage ratios.
Tata Capital has already received board approval for the IPO and is classified as an upper-layer non-banking financial company by the Reserve Bank of India. The NCLT’s final order on the Tata Motors Finance merger is expected by the end of this financial year.
