Tata Capital files confidential DRHP for ₹15,000 crore IPO: What we know so far

Tata Capital IPO: The initial public offer of Tata Capital, the financial services arm of Tata Group, is nearing as the company has filed draft papers with markets regulator Securities and Exchange Board of India (SEBI) via a confidential pre-filing route.

In a stock exchange filing, Tata Capital said, "The company has filed the Pre-filed Draft Red Herring Prospectus dated April 4, 2025, under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, with SEBI, BSE, and NSE in connection with its Initial Public Offering of equity shares of face value of ₹10 each."

Tata Capital IPO: What we know so far

• The initial share sale will be a fresh issuance of equity shares, as well as an offer for sale (OFS) by a few shareholders.
• The IPO size is expected to be more than ₹15,000 crore.
• The proposed public offer will include 2.3 crore shares by issuing new shares and OFS by certain shareholders.
• As of March 31, 2024, Tata Capital's holding company, Tata Sons, owned a 92.83% stake in the firm.
• In the financial year 2023-24, the company posted a 34% year-on-year (YoY) growth in revenue to ₹18,178 crore.

Why is Tata Capital going public?

The Reserve Bank of India (RBI) has identified Tata Capital as an upper-layer non-banking finance company (NBFC) since September 2022.

As per the RBI's mandate, upper-layer NBFCs must list on stock exchanges within 36 months of being designated as such.

Bajaj Housing Finance, which is also an upper-layer NBFC, was listed on September 16 at ₹150 apiece on the NSE, reflecting a 114.2% premium over the issue price of ₹70. HDB Financial Services has also submitted papers for a public issue.

Tata Play, earlier called Tata Sky, was the first Indian company to pick a confidential DRHP route in December 2022 and even secured SEBI's observation letter. However, it later called off IPO plans.