Tata Capital IPO In The Works? Tata Sons-Backed NBFC Files Draft Papers with SEBI — Key Details Inside

Tata Capital Ltd, the financial services arm backed by Tata Sons, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a highly anticipated initial public offering (IPO), the company confirmed on Monday.

According to the draft papers, the IPO will comprise a fresh issue of up to 210 million equity shares, along with an offer for sale (OFS) of up to 265.8 million shares by existing shareholders, as mentioned in the report by Reuters. 

Tata Sons to Sell 230 Million Shares
The biggest portion of the offer for sale will come from promoter Tata Sons, which plans to offload up to 230 million shares as part of the public offering. In addition, International Finance Corporation (IFC), an existing investor, has proposed to sell up to 35.8 million shares.

Fresh Issue to Fund Future Growth
The company said that proceeds from the fresh issue will be used “to meet future capital requirements.

Top Banks Appointed as Lead Managers
Kotak Mahindra Capital Company, BNP Paribas, and Citigroup Global Markets India have been appointed as the book-running lead managers for the IPO, the DRHP revealed. The listing is expected to be one of the most closely watched financial services IPOs of the year, Reuters added. 

Read More - Tata Capital Aims To Go Public With Rs 1.67 lakh Crore Valuation In Sight: All You Need to Know

According to Bloomberg, Tata Capital is expected to raise approximately $2.2 billion (Rs 18,370 crore) through the share sale, with a likely launch in the first half of September. Representatives from Tata Capital and its parent company, Tata Sons Pvt., declined to comment on the report. 
 

Regulatory Push
Tata Capital had filed for a confidential IPO in April and secured regulatory clearance last month. Under India’s capital markets framework, the company must now release an updated draft prospectus for public comment before submitting the final version, as per the report by Bloomberg.