Tata Capital Submits DRHP for a Massive IPO of INR 15,000 Crore

In preparation for the launch of its massive INR 15,000 crore Tata Capital IPO, the Tata Group has submitted draft documents to the Securities and Exchange Board of India, the capital market regulator. The conglomerate headed by N Chandrasekaran has reportedly submitted its paperwork to SEBI in preparation for its much-anticipated IPO, which is owned by Tata Sons and IFC. Tata Sons and IFC would sell their shares in the Tata Capital IPO, which would be an offer for sale (OFS), according to the draft paper. With the help of Kotak Mahindra Capital, Citi, JP Morgan, Axis Capital, ICICI Securities, HSBC Securities, IIFL Capital, BNP Paribas, SBI Capital, and HDFC Bank, Tata Sons submitted the draft documents via the confidential procedure. The draft papers have been submitted to the market regulator via private pre-filing process, according to a recent media report. A mix of main and secondary share offerings will be made; Tata Sons and investor IFC will split the shareholding, with the former contributing more.

More Details of the IPO

An news agency stated on March 9, 2025, that Tata Capital is expected to submit initial public offering (IPO) paperwork to markets regulator Sebi in order to raise $2 billion (more than 17,000 crore Indian rupees). Only after receiving final NCLT permission for the Tata Motors Finance merger with the company would this step be taken. According to this news outlet, Tata Capital's initial public offering (IPO) would cost $11 billion. The National Company Law Tribunal (NCLT) is awaiting for the final decision, which should be closed by the end of this fiscal year (FY25). The Reserve Bank of India (RBI) has designated Tata Capital as an upper-layer non-banking finance company (NBFC), and the board has already given its permission for the inaugural share sale to be floated. The proposed IPO would include 2.3 crore equity shares through a new issue and an offer of sale (OFS) by some current owners, per a disclosure given to stock markets.

Tata Capital Plans to Raise Funds

In addition to the IPO, Tata Capital declared that it will further strengthen its financial position prior to the public listing by raising money through a rights issue. If successful, this would be one of the biggest initial share sales in the nation's financial industry. Following the offering of Tata Technologies in November 2023, this would also be the second public market debut for the Tata Group in recent years. The corporation is making this move in an attempt to meet the RBI's listing standards. Within three years of being classified as such, upper-layer NBFCs must list on the stock exchange in accordance with the RBI's mandate. In September 2022, Tata Capital was classified as an upper-layer NBFC.