Tata Capital may file IPO draft papers via confidential route for SEBI approval: Report

Tata Group’s financial services arm Tata Capital Ltd (TCL) has expedited the process to launch its initial public offering (IPO) with the finalisation of investment bankers for the issue. Tata Group has reportedly finalised a syndicate of not more than 10 investment banks for the public offering.

The highly anticipated IPO of Tata Capital, expected to be worth ₹15,000 crore, will be looked over by a syndicate of up to 10 investment banks, following a deal signed with the company, as per a Moneycontrol report.

These investment banks include, Citibank, Kotak Mahindra Capital, JP Morgan, HSBC Securities, Axis Capital, ICICI Securities, HDFC Bank, IIFL Capital, BNP Paribas, and SBI Capital, the report added quoting sources.

A source has also informed that the Tata Group’s financial firm is expected to file its draft papers either by the end of the current month, March or sometime early in April 2025, through the Securities Exchange Board of India’s (SEBI) confidential pre-filing route, the report added.

Tata Capital Ltd recently received a green light from its Board to launch the IPO, along with a rights issue of up to ₹1,500 crore to the existing shareholders.

As per the guidelines set by the Reserve Bank of India (RBI), under the ‘upper layer’ NBFC section, Tata Capital is mandated to list its shares on the Indian stock exchanges by September this year.

The initial share sale of Tata Capital Ltd will consist of a fresh issuance of 23 crore equity shares and an offer-for-sale component (OFS).

According to a report by Crisil Ratings, Tata Sons owns a total of 92.83% of Tata Capital's shares, while a large part of the remaining shares are owned by other Tata Group firms as of March 31, 2024.

"Tata Sons also has personnel from its senior management on TCL's board. Tata Sons has infused capital of ₹6,097 crore in TCL in the last five fiscals, of which ₹2,500 crore was infused in fiscal 2019, ₹1,000 crore in fiscal 2020, ₹594 crore in fiscal 2023 and ₹2,003 crore during fiscal 2024, indicating the intent of the group to step up its focus on the lending business," the report added.