Tata Sons-backed Tata Capital files for IPO

Tata Sons plans to sell up to 230 million shares in the offering, while International Finance Corporation proposes to sell up to 35.8 million shares.

Tata Capital, the NBFC company of the Tata Group, has filed draft papers with the capital market regulator SEBI for raising funds through its IPO. The total offer size for the IPO is 475.8 million shares.

The Tata Sons-backed financial services company will issue up to 210 million new shares, while existing shareholders will offload up to 265.8 million shares.

Tata Sons plans to sell up to 230 million shares in the offering, while International Finance Corporation proposes to sell up to 35.8 million shares. Proceeds from the fresh issue will be used to meet the company's future capital requirements including onward lending.

Kotak Mahindra Capital, BNP Paribas, Citigroup Global Markets are among the bookrunning lead managers of the offering.

Tata Capital initially filed confidential IPO papers in April and received approval from India’s market regulator last month to proceed. Companies are then required to submit an updated draft red herring prospectus and allow time for public feedback before filing a final version.

The Reserve Bank of India has issued guidelines requiring larger shadow banks including Tata Capital to list by the end of September. The move by Tata Group is in line with RBI's mandatory requirement for "upper layer" NBFCs to list within three years of being notified, i.e, September 2025.

Tata Capital Financial Services, which merged with Tata Capital later in January 2024, is on the regulator's list.

*With Agency Inputs