IPO-bound Tata Capital Ltd.'s board approved on Thursday fundraising via a rights issue to raise up to Rs 1,752 crore and up to Rs 30,000 crore via bonds.
The board approved issuance of secured, unsecured, subordinated, perpetual debt, market-linked redeemable non-convertible debentures/ green bonds, up to Rs 30,000 crore in one or more tranches on a private placement basis, according to a stock exchange filing.
Moreover, the company will issue equity shares for an aggregate amount of Rs 1,752 crore on a rights basis to the existing equity shareholders as on the record date of June 26.
The company had raised Rs 1,500 crore through a rights issue earlier this year for further lending and improving its leverage ratios, with Tata Sons subscribing to its entire entitlement.
Tata Capital confidentially filed draft papers for a $2-billion IPO in April, which has likely been approved by SEBI, 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 got board approval for the listing, following which an extraordinary general meeting also passed the same with requisite majority.
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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