Tata Capital files for mega Rs 15,000 crore plus IPO via confidential route; Tata Sons & IFC to sell shares in OFS

Tata Capital Files Rs 15,000+ Cr IPO via Confidential Route; Tata Sons, IFC to Offload Shares. Expert Analysis: IPO Filing & Route Chosen: Filed for Rs 15,000+ crore IPO via SEBI's confidential pre-filing route. Structure of the Issue: The IPO includes a fresh issue of 230 million shares and an OFS by Tata Sons and IFC. Promoter Holding Strategy: Tata Sons, holding 92.83%, will remain the majority shareholder (above 75%) post-IPO. Regulatory Compliance: The IPO aligns with RBI’s mandate that “upper-layer” NBFCs be listed by September 2025. Capital Infusion via Rights Issue: The Rights issue of Rs 1,504 crore was approved in February 2024 and fully subscribed by Tata Sons. Merger Impact-TMFL: The TMFL merger has been approved. Tata Motors will hold a 4.7% stake in the merged Tata Capital entity. Assets Under Management (AUM): As per Crisil (September report), Tata Capital’s AUM rose to Rs 158,479 crore as of March 31, 2024 (Rs 119,950 crore in FY23, Rs 94,349 crore in FY22). Capital Infusion by Tata Sons: Tata Sons infused Rs 6,097 crore into Tata Capital over the last five fiscals, signaling a strong commitment to the business. Year-wise Breakup: Rs 2,500 crore in FY19, Rs 1,000 crore in FY20, Rs 594 crore in FY23, and Rs 2,003 crore in FY24.