The latest reports from MoneyControl confirm that Tata Capital has filed in confidence for an IPO with a target valuation of more than ₹15,000 crore. In addition to issuing new shares, this IPO will involve an offer for sale (OFS) by current shareholders, Tata Sons and the International Finance Corporation (IFC).
The intention to undertake an initial public offering (IPO) was approved by the board of Tata Capital on February 25. The IPO will issue up to 230 million new shares and an offer for sale (OFS) of shares owned by current shareholders, Tata Sons and IFC. While the OFS would enable existing investors to partially exit or monetise their interests, the new issue will directly raise money for Tata Capital to support its growth and expansion. The IPO would proceed on the conditions of high investor sentiment and essential clearances from SEBI and other crucial entities are secured.
As of March 31, 2024, Tata Sons held 92.83% of Tata Capital Limited directly, with IFC and other Tata Group companies holding the remaining shares.
Why Is Tata Capital Filing For IPO Now?
The Reserve Bank of India (RBI) policy mandates that all “upper layer” non-banking financial companies (NBFCs) list on the stock exchange within three years of being classed as such. With the deadline falling in September 2025, Tata Capital filed its initial public offering (IPO) in April. Following their merger in January 2024, Tata Capital Financial Services—previously on the RBI’s top layer list—became subject to this listing requirement. Furthermore, in June 2024, Tata Capital announced a merger with Tata Motors Finance Ltd (TMFL) under a scheme of the National Company Law Tribunal (NCLT). Tata Capital will give TMFL’s stockholders equity shares as part of this agreement, giving Tata Motors Limited a 4.7% ownership position in the combined company.
More About Tata Group IPO
The Reserve Bank of India (RBI) has designated Tata Capital Limited as a “Systemically important, non-deposit-taking, Core Investment Company (CIC).” As a Core Investment Company, Tata Capital offers financial services in addition to investing in and owning stock in group companies. With its operations in both wholesale finance (loans and services to corporations, major organizations, and institutions) and retail finance (loans to individuals, such as home, vehicle, or personal loans), Tata Capital offers a wide range of well-rounded products. This combination enables the business to serve a variety of client segments’ financial demands.
Tata Capital’s lending business has grown significantly, according to a September report from Crisil Ratings. The company’s assets under management (AUM) increased from Rs. 94,349 crore in March 2022 to Rs. 119,950 crore in March 2023 and then to Rs. 158,479 crore in March 2024.
With a total investment of Rs. 6,097 crores over the last five fiscal years, including significant contributions of Rs. 2,500 crores in FY2019, Rs. 1,000 crores in FY2020, Rs. 594 crores in FY2023, and Rs. 2,003 crores in FY2024, Tata Sons supported this expansion. These expenditures exhibit the Tata Group’s dedication to growing its lending business and bolstering Tata Capital’s financial standing.
