Noel Tata’s BIG move, this Tata Sons backed company files draft papers for Rs. 175429700000 IPO with…, company is…

Tata Capital, a non-banking financial company, has filed updated draft papers for a major initial public offering (IPO), which is expected to raise around USD 2 billion (i.e. Rs 17,200 crore), according to a media report. The IPO is likely to value the company at around USD 11 billion, they added.

As per the revised draft red herring prospectus (DRHP) submitted on Monday, the IPO will consist of 47.58 crore shares including a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares.

How Will Tata Sons Allot These IPOs?

Under the OFS component, Tata Sons will offload 23 crore shares, while the International Finance Corporation (IFC) will divest 3.58 crore shares.

Currently, Tata Sons holds an 88.6 per cent stake in Tata Capital, while IFC owns 1.8 per cent holding. Proceeds from the IPO will be used to strengthen the company’s Tier-1 capital base, supporting future capital requirements, including onward lending.

Tata Capital, the financial services arm of the Tata Group, had earlier filed draft papers in April through the confidential pre-filing route and secured approval from market regulator Sebi in July. As part of the process, companies are required to file an updated DRHP before submitting the final red herring prospectus (RHP).

If successful, this IPO will become the largest public issue in India’s financial sector. It will also mark the Tata Group’s second public listing in recent years, following the debut of Tata Technologies in November 2023.

Tata Capital Financial Performance

For the financial year 2024-25, Tata Capital reported a profit after tax (PAT) of Rs 3,655 crore, up from Rs 3,327 crore in FY24. Revenue also witnessed a sharp increase to Rs 28,313 crore in FY25 from Rs 18,175 crore in the previous year.

(With Inputs From PTI)

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