KuberGrow Team In a key move in its initial public offering (IPO) journey, Tata Capital has filed draft papers to the Securities and Exchange Board of India (SEBI) through the confidential pre-filing route for an IPO estimated to be ₹over 15,000 crore. The IPO will include a fresh issue of shares along with an offer for sale (OFS) by existing shareholders, including Tata Sons and the International Finance Corporation (IFC). IFC is likely to sell a smaller share, but Tata Sons will make a significant contribution to the OFS, though its holding is likely to be over 75% after listing.
Tata Capital, an NBFC and one of the most important subsidiaries of Tata Sons—the holding company of the Tata Group—has emerged as the eighth prominent Indian company to opt for the confidential filing option, after names like Tata Play, Oyo, Swiggy, Vishal Mega Mart, Credila Financial Services, Indira IVF, and PhysicsWallah.
The IPO is a strategic compliance measure as per the Reserve Bank of India’s directive mandating all “upper layer” NBFCs to list by September 2025. Tata Capital Money Services, which joined with Tata Capital in January 2024, is part of this group. The list ͏also comes after a big change where Tata Motors Money Ltd (TMML) is being mixed with Tata Capital. Because of this mix, Tata Motors Limited (TML) will get share in Tata Capital, which is a 4.7% part in the joined company
Tata Capital is getting ready, so it has brought in strong group of ten money banks like Kotak Mahindra Capital, Citi, JP Morgan, Axis Capital, ICICI Securities, HSBC Securities IIFL Capital BNP Paribas SBI Capital and HDFC Bank. Advisory at the early stage was done by Kotak Mahindra Capital and law firm Cyril Amarchand Mangaldas.
In February, the board of the company approved the IPO plan, giving a green signal to issue fresh shares of up to 230 million. Along with this, the board also cleared a ₹1,504 crore rights issue, which was fully subscribed by Tata Sons, to support the company’s capital base before the listing.
The confidential pre-filing path, launched by SEBI in November 2022, provides businesses with the benefit of keeping financial and strategic information private while testing the market environment. This freedom allows companies to postpone or cancel their public issue without the glare that accompanies a public draft red herring prospectus (DRHP).
Tata Capital, classified by the Reserve Bank of India as a systemically important, non-deposit-taking core investment company, has built a diversified portfolio of financial services in wholesale lending as well as retail lending. As of March 31, 2024, its assets under management (AUM) were ₹1,58,479 crore, compared to ₹1,19,950 crore in the earlier year and ₹94,349 crore in 2022. Crisil Ratings noted enhanced emphasis by Tata Group on the lending business, as evident from capital infusions of ₹6,097 crore over the past five fiscal years.
The proposed IPO will be one of the largest in Indian financial services sector, a milestone for Tata Capital as it prepares to face public scrutiny and broader investor participation.
