IPO-bound Tata Capital Ltd.'s board will consider fundraising via rights issue and non-convertible debentures on Thursday, according to a stock exchange filing on Monday.
The company had raised Rs 1,500 crore through a rights issue earlier this year, with Tata Sons subscribing to its entire entitlement. The company said it planned to use the proceeds for further lending and improving its leverage ratios.
Tata Capital confidentially filed draft papers for a $2-billion offer have likely been approved by the country's market regulator, people aware of the matter told NDTV Profit on the condition of anonymity.
The non-banking financial company is now expected to refile updated offer documents publicly, as per regulations set by the Securities and Exchange Board of India.
The initial public offering is expected to comprise a fresh issue of 23 crore equity shares and an offer for sale by certain existing shareholders.
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. The final order on the Tata Motors Finance merger was expected by the end of the financial year 2025.
The upper layer NBFC had gotten board approval for the listing, following which an extraordinary general meeting also passed the same with requisite majority.
The draft papers were filed confidentially in April 2025.
NDTV Profit had reported earlier this month that the IPO proposal had reached the SEBI chairperson for final approval, a step typically reserved for offerings of significant size.
Once the listing goes through, Tata Capital will be the 17th Tata Group company to be publicly traded.
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