The Tata Group is now gearing up for yet another blockbuster IPO from its very own financial unit, Tata Capital. The company has taken the first step by filing draft papers with SEBI via the confidential pre-filing route, thus becoming part of major Indian firms like Tata Play, Oyo, Swiggy, and PhysicsWallah that have taken advantage of this streamlined option.
Having projected an estimated size of over ₹15,000 crore, this IPO will be among the biggest in India in recent years. But when will the listing happen? And what are the things to keep in mind for the investors? Let us get into the details.
Tata Capital IPO: Key Highlights
Confidential Pre-Filing Route: A Strategic Move
The confidential pre-filing route gives Tata Capital a chance to quasi-secretly submit initial documents to SEBI. The period before an offering in which documents have been filed allows the company to feel out the likelihood of approval without suffering untoward attention from media scrutiny.
This IPO Will Be Diluting in Nature for Tata Sons and IFC
As of March 31, 2023, Tata Sons held 92.83% of Tata Capital, while the remnant shares are owned by other Tata entities and International Finance Corporation (IFC). Both Tata Sons and IFC are expected to dilute their stakes through this IPO.
Structure of the IPO: Fresh Issue + Offer for Sale
The IPO will consist of:
- A fresh issue of up to 230 million shares
- An offer for sale (OFS) for existing shareholders
And the board of Tata Capital further approved a rights issue in February aimed at raising ₹1,504 crore just before the IPO hit the road.
Investment Banks Appointed for the Mega Listing
Tata Capital has onboarded 10 top investment banks to manage the IPO, including:
- Kotak Mahindra Capital
- Citi
- JP Morgan
- Axis Capital
- ICICI Securities
- HSBC Securities
- IIFL Capital
- BNP Paribas
- SBI Capital
- HDFC Bank
This strong lineup signals confidence in the IPO’s success.
When Will the Tata Capital IPO Launch?
There is yet no fixed date for this listing but experts had speculated that the IPO could be launched in 2025 based on the time SEBI takes for giving approval. Investment pundits should see official announcements as updates in financial news sources.
What Makes Tata’s IPO So Important?
Tata Capital is one of the most prominent non-banking financial companies (NBFCs), with services ranging from loans to wealth management and insurance provided under the auspices of the Tata Group. Over the last five years, Tata Sons has “invested” around ₹6,097 crore into Tata Capital, which has certainly reinforced the financial backbone of Tata Capital.