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Tata Capital, the financial services company of Tata Group, is preparing to bring its initial public offering i.e. IPO. According to reports, the company has filed a draft Red Herring Prospects (DRHP) ie draft papers for IPO for IPO.
According to media reports, SEBI has this pre-filing confident for the company’s IPO. The Confidential Pre-Filing route was introduced by SEBI in November 2022. Under this, companies help in filing their DRHP without making their necessary business details public.
The company wants to raise 15 thousand crore rupees through IPO
Through this IPO, the company wants to raise 15 thousand crores. Under the IPO, the company will issue 2.3 crore new shares. Apart from this, there will also be an offer for sale (offs) from some existing shareholders.
Tata Sons’s 92.83% stake in Tata Capital
Tata Sons is the holding company of Tata Capital. It has a 92.83% stake in Tata Capital. The rest of the Tata Group has other companies and trusts. Tata Capital has the status of Additional layer NBFC (Non Banking Financial Company) from Reserve Bank of India (RBI).
10 investment banks appointed for listing
Tata Capital has appointed 10 investment banks as consultants for listing. These banks include Kotak Mahindra Capital, City, JP Morgan, Axis Capital, ICICI Securities, HSBC Securities, IIFL Capital, BNP Paribas, SBI Capital and HDFC Bank.
According to the report, the IPO will include the combination of primary and secondary share offering. In which Tata Sons and Investor International Finance Corporation (IFC) are planning to reduce their stake. However, Tata Sons is expected to be more important in stake sales.
Tata Capital joined NBFC in September 2022
According to the RBI order, it is necessary for the upper layer NBFC to list the stock markets within 3 years of getting this recognition. Tata Capital qualified at the Upper Layer NBFC in September 2022. That is, under the RBI rule, Tata Capital has a time till September 2025 to list itself in the stock market.
Board approval for IPO was received last month
Tata Capital received its board approval for IPO only last month. Prior to IPO, the board also approved the rights issue of ₹ 1,504 crore in February. This will be the first IPO of a Tata Group company after the listing of Tata Technologies in 2023.
The company’s AUM was 1.58 lakh crore rupees (till 31 March 2024). Personal loans, home loans, loans for vehicles, loans for commercial vehicles and business loans. Apart from this, it also provides credit cards and digital loans.
