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Financial Services firm Tata Capital is likely to file an initial papers with Market Regulator SEBI, to raise $ 2 billion (over 17,000 crore) through an early public offering (IPO), according to the formulas after receiving final approval from NCLT for Tata Motors with the company.
In this size, the company is expected to have a price of about 11 billion dollars, he said.
Sources said that the final order has been awaited from the National Company Law Tribunal (NCLT), which is expected to close by the end of this financial year (FY25).
An email sent to Tata Capital regarding the filing of draft paper remained unanswered.
Tata Capital, identified by the Reserve Bank of India (RBI) as an upper-layer non-banking finance company (NBFC), already obtained its board approval to float the initial share sales.
The proposed IPO will include a new issue and 2.3 million equity shares through a new issue and sale offer by some existing shareholders.
In addition to the IPO, Tata Capital announced a plan to raise funds through an right to pursue its financial position before the public listing.
If successful, it will be one of the largest initial share sales in the country’s financial sector. Following the list of Tata Technologies in November 2023, this will also start the second public market of Tata Group in recent years.
This step is part of the company’s effort to follow RBI’s listing requirements.
According to the RBI mandate, it is necessary to list the upper-layer NBFC on the stock exchange within three years of the upper-layer NBFC. Tata Capital was classified as the upper-layer NBFC in September 2022.
Apart from Tata Capital, another upper layer NBFC HDB Financial Services, owned by HDFC Bank, is also set to launch its IPO. In October, the company filed its draft papers to earn Crore 12,500 crores through initial share sales.
Whereas after receiving approval of NCLT on the proposed merger, a draft with SEBI has been planted as advisors to Law firm Cyril Amarchand Mangaldas and Investment Bank Kotak Mahindra Capital to prepare a draft for Red Herring Prospectus (DRHP).
In Tata Motors’s Q3 Income Call, CFO PB Balaji, a group of auto manufacturers, said the meeting of Tata Motors Finance creditors has been completed.
“Final orders (are) are waiting from NCLT, and we expect it to be closed by the end of this financial year,” he said.
In September, the Competition Commission of India (CCI) approved the proposed merger.
In June 2024, all three companies – Tata Capital, Tata Motors Finance and Tata Motors’ Board – approved the merger of Tata Motors Finance with Tata Capital along with Tata Capital.
As an idea for the merger, Tata Capital will release its equity shares to shareholders of Tata Motors Finance, resulting in a 4.7% stake in the merged unit by Tata Motors.
Tata Sons is a holding company of Tata Capital, with a 92.83% stake.
Published – March 09, 2025 12:52 pm IST
