Tata Sons-backed Tata Capital files for IPO

Tata Sons-backed Tata Capital files for IPO.

Expert Analysis :

• IPO Filing Details: Tata Capital has filed draft papers with SEBI for an IPO totaling 475.8 million shares.

• Fresh Issue and OFS Split: The offer includes up to 210 million fresh shares and an offer for sale of up to 265.8 million shares.

• Stake Sales: Tata Sons plans to offload up to 230 million shares, while IFC will sell up to 35.8 million shares.

• Use of Proceeds: Proceeds from the fresh issue will be used for onward lending and future capital requirements.

• Regulatory Compliance: The IPO aligns with the RBI’s requirement for "upper layer" NBFCs to list by September 2025. Tata Capital Financial Services, merged in January 2024, is on the RBI’s list.

• IPO Approval Timeline: Initial confidential filing was made in April, and SEBI approval was received last month.

• Lead Managers: Kotak Mahindra Capital, BNP Paribas, and Citigroup Global Markets are the bookrunning lead managers.