Tata Capital has filed draft red herring prospectus
(DRHP) with markets regulator Securities and Exchange Board of India (SEBI) for
a $2 billion initial public offering (IPO) through a confidential pre-filing
route. At this size, the company is expected to be valued around $11 billion.
The IPO will consist of a fresh issue of equity shares, along with an offer for
sale (OFS) by certain shareholders. The proposed IPO will include 23 million
equity shares through a fresh issue and OFS by existing shareholders.
Tata Capital, identified by the Reserve Bank of India (RBI)
as an upper-layer non-banking finance company (NBFC), has already secured
board's approval to proceed with the initial share sale. Notably, Tata Sons,
the holding company of Tata Capital, owns a 92.83 per cent stake in the
company.
If successful, this IPO will be the largest initial share
sales in the country's financial sector. It will also mark the Tata Group's
second public market debut in recent years, following the listing of Tata
Technologies in November 2023. This move is part of the company's efforts to
comply with the Reserve Bank of India's (RBI's) listing requirements.
Tata Capital (TCL), a subsidiary of Tata Sons, is operating
as an NBFC in India. The firm offers consumer loans, wealth management,
commercial finance, and infrastructure finance, among others.
Source: Ace Equity
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