Tata Capital to file draft IPO papers after NCLT nod on merger with Tata Motors Fin

Tata Capital to File IPO Papers Post-NCLT Merger Approval.

Expert Analysis :

• IPO Plan: Tata Capital plans to file for a USD 2 billion (Rs 17,000 crore) IPO after NCLT approves Tata Motors Finance's merger.

• Valuation & NCLT Approval: Tata Capital is expected to be valued at USD 11 billion, with NCLT’s final order likely by the end of FY25.

• IPO Structure: Tata Capital, an upper-layer NBFC, has board approval for an IPO comprising 2.3 crore shares via a fresh issue and OFS.

• Rights Issue & Market Debut: Tata Capital plans a rights issue to strengthen its finances pre-IPO, marking the Tata Group’s second public listing after Tata Technologies in 2023.

• Regulatory Compliance & Industry Trends: Tata Capital must list by September 2025 as per RBI rules, while HDB Financial Services plans a Rs 12,500 crore IPO.

• IPO Advisors & Filing Timeline: Tata Capital appointed Cyril Amarchand Mangaldas and Kotak Mahindra Capital as IPO advisors; DRHP filing awaits NCLT merger approval.

• Merger Approvals: Tata Motors Finance creditors' meeting is complete, with NCLT’s final order expected by FY25-end; CCI approved the merger in September.

• Merger & Ownership Structure: Tata Capital’s board approved Tata Motors Finance’s merger, giving Tata Motors a 4.7% stake, while Tata Sons holds 92.83% ownership.