IPO-Bound Tata Capital To Raise Rs 1,752 Crore Via Rights Issue, Rs 30,000 Crore Via Bonds

Tata Capital to Raise Rs 1,752 Cr via Rights Issue, Rs 30,000 Cr via Bonds Ahead of IPO.

Expert Analysis :

• Rights Issue Approval: Tata Capital Ltd.'s board approved raising up to Rs 1,752 crore via a rights issue to existing shareholders as of June 26.

• Bond Issuance Plan: The board also approved issuing secured, unsecured, subordinated, perpetual debt, and green bonds up to Rs 30,000 crore via private placement in tranches.

• Earlier Fundraising Round: A previous Rs 1,500 crore rights issue was completed earlier this year, with Tata Sons subscribing to its entire entitlement.

• IPO Filing and SEBI Nod: Tata Capital filed confidential draft papers for a $2-billion IPO, expected to include 23 crore fresh equity shares; SEBI’s approval is anticipated but not yet confirmed.

• IPO Preparations and Merger: Tata Capital has been preparing for its IPO, awaiting the National Company Law Tribunal’s final order on its merger with Tata Motors Finance, expected by FY25-end.

• SEBI Final Review & Listing Impact: NDTV Profit reported that the IPO proposal has reached SEBI’s chairperson for final approval; Tata Capital will become the 17th Tata Group company to list.