drashti In a bold stride towards its highly anticipated IPO, Tata Capital is turning up the financial heat. The financial services arm of the Tata Group is set to raise a staggering ₹31,752 crore through a mix of a rights issue and bond issuances—proving that when the House of Tatas makes a move, it’s never half-hearted.
The company’s board has given the green light to a ₹1,752 crore rights issue, offering existing shareholders a chance to increase their stake before the firm goes public. This fresh round of capital comes hot on the heels of a ₹1,500 crore rights issue earlier this year, which saw Tata Sons stepping in to take up the entire allotment. Clearly, the parent company is not just backing its financial arm—it’s doubling down.
But that’s not all. In a parallel fundraising push, Tata Capital will also issue bonds worth up to ₹30,000 crore. These will come in various avatars: secured, unsecured, subordinated, perpetual debt, and even green bonds, signaling the company’s commitment to not just balance sheets but also sustainability. The bonds will be rolled out in tranches via private placement, offering a wide net to attract institutional interest.
All this financial activity is more than just balance sheet posturing—it’s groundwork for what promises to be one of the most closely-watched IPOs in recent years. Tata Capital has already filed confidential draft papers for a $2-billion public offering, which will include the issuance of approximately 23 crore fresh equity shares. Though SEBI’s final nod is still pending, NDTV Profit reports that the proposal is already on the regulator’s chairperson’s desk—a sign that approval may be imminent.
Adding another layer to the buildup is Tata Capital’s ongoing merger with Tata Motors Finance, which is inching closer to a conclusion. The final verdict from the National Company Law Tribunal is expected by the end of FY25. Once completed, this merger will further consolidate the group’s financial services under a single roof, creating a leaner, stronger, and more market-ready entity.
If all goes as planned, Tata Capital will become the 17th Tata Group company to debut on Indian stock exchanges. And while most companies tiptoe toward an IPO, Tata Capital seems to be marching in with brass bands and full-page announcements.
The takeaway? This isn’t just a fundraising exercise; it’s a carefully choreographed prelude to a public listing that could reshape the landscape of India’s NBFC space. With the Tata legacy backing it and the capital muscle to match, Tata Capital’s IPO journey is one that retail and institutional investors alike will want to keep a very close eye on.
