Tata Capital, supported by Tata Sons, submits application for initial public offering in India
Tata Capital, a leading financial services company, has filed for an Initial Public Offering (IPO) in compliance with RBI mandates for "upper-layer" non-bank lenders, a category Tata Capital falls under following the scale-based regulatory framework.
The IPO comprises a total of 47.58 crore shares, including a fresh issue of 21 crore shares and an offer for sale (OFS) of approximately 26.58 crore shares. Tata Sons will sell about 23 crore shares, and the International Finance Corporation (IFC) will divest approximately 3.58 crore shares. This combination of raising new capital and existing shareholders monetizing their holdings is expected to generate proceeds of around ₹17,000 - 17,200 crore.
Post-IPO, Tata Sons' stake will dilute from around 88.6% to about 74.2%-78.8%, but it will maintain a controlling stake of over 75% in Tata Capital. The remaining shares will be offloaded by existing shareholders, with the IFC proposing to sell up to 35.8 million shares, and other shareholders planning to offload up to 265.8 million shares.
The fresh issue will increase the company's equity base from about 403 crore shares to roughly 424 crore shares. Tata Capital intends to use these funds to augment its Tier-I capital base to support future lending operations and strengthen its balance sheet to facilitate growth in the competitive non-banking financial company (NBFC) sector.
The total assets of Tata Capital stood at ₹24.85 lakh crore as of March 31, 2025, up from ₹13.56 lakh crore in FY23, highlighting strong growth preceding the IPO.
Kotak Mahindra Capital, BNP Paribas, and Citigroup Global Markets are the bookrunning lead managers for Tata Capital's IPO. Employees of the company will continue to be part of the organization post-acquisition, and the industrial footprint will be retained.
This IPO provides an opportunity for investors to invest in Tata Capital, a company that has shown significant growth in its assets over the past few years. The proceeds from the fresh issue will be used to strengthen the company's balance sheet and support its future lending operations, setting the stage for continued growth in the competitive NBFC sector.
The Initial Public Offering (IPO) of Tata Capital consists of 47.58 crore shares, with a fresh issue of 21 crore shares and an offer for sale (OFS) of approximately 26.58 crore shares.
The proceeds generated from the IPO, expected to be around ₹17,000 - 17,200 crore, will be used to augment Tata Capital's Tier-I capital base, supporting future lending operations and strengthening its balance sheet for growth in the competitive non-banking financial company (NBFC) sector.
Investors can seize this opportunity to invest in Tata Capital, a company demonstrating strong growth in its assets over the past few years. The fresh issue is aimed at strengthening the company's balance sheet and setting the stage for further growth in the competitive NBFC sector.
