Tata Capital Files for IPO: Tata Sons-Backed NBFC Plans Major Market Debut

In order to acquire money through an initial public offering (IPO), Tata Capital, the main financial services provider for the Tata Group, has submitted draft documents to SEBI, the capital markets regulator. The IPO's entire offer size is 47.58 crore shares, of which 21 crore will be issued as new shares and the remaining 26.58 crore will be sold by current owners.

Tata Sons and IFC to Offload Shares in IPO

In order to reduce its interest below 75%, Tata Sons intends to sell up to 23 crore shares in the offering. The sale of up to 3.58 crore shares is what the International Finance Corporation is proposing.

The price range for the Tata Sons-backed NBFC has not yet been disclosed. On a fully diluted basis, Tata Sons now holds an 88.6% ownership in the NBFC, with the remaining 7% coming from other Tata Group firms.

Utilization of IPO Proceeds: Lending and Expansion

Future capital needs of the business, including further lending, will be covered by the proceeds of the new issue. Additionally, offer expenditures will be covered by a part of the new issue's revenues. Tata Capital is the third-largest NBFC in terms of loan book size, with an overall AUM of INR 2.27 lakh crore.

IPO Triggered by RBI Regulation for Systemically Important NBFCs

With 1,496 locations around India, it is one of the largest and most diverse NBFCs with the quickest rate of growth. Private equity, wealth management, and the distribution of third-party goods are some of its other ventures. Tata Capital has received INR 6,000 crore in capital infusions over the past six years, with INR 2,000 crore and INR 500 crore coming in FY24 and FY23, respectively. A regulatory mandate is driving the initial public offering (IPO).

Tata Capital must go public within three years after being designated as an upper-layer systemically important NBFC by the Reserve Bank of India in September 2022. This September marks the end of that deadline. The offering's bookrunning lead managers include Citigroup Global Markets, BNP Paribas, and Kotak Mahindra Capital.

IPO Momentum in India: Tech Firms Line Up for Listings in 2025

In the first half of 2025, the IPO pace was slowed by global tensions and the tariff war that US President Donald Trump started. Because of this, in H1 2025, just two cutting-edge IT companies—ArisInfra and Ather Energy—debuted on the public market.

Nonetheless, it is anticipated that the number of IPOs will rise significantly in the second half of the year. Wakefit, Pine Labs, Curefoods, Capillary Technologies, Shadowfax, Shiprocket, and Urban Company are among the cutting-edge tech firms that have submitted their draft papers to SEBI and are currently seeking approval to begin their public offerings.