Tata Capital to Become Next Tata Company to Launch IPO After 15 Months: Rights Issue of ₹1,504 Crore Approved

Tata Capital, an unlisted entity of the Tata Group, is gearing up for its stock market debut. According to reports, the company’s board has approved an Initial Public Offering (IPO), making it the first Tata Group IPO in over 15 months.

IPO Structure: Fresh Issue and Offer for Sale (OFS)

The IPO will consist of two components:

1. Fresh Issue of Shares: Tata Capital will issue new shares worth ₹23 crore, each carrying a face value of ₹10.
2. Offer for Sale (OFS): Certain existing shareholders will sell a portion of their holdings. However, the exact size of the OFS and details regarding the selling shareholders have not yet been disclosed.

According to reports, the OFS will be subject to market conditions, regulatory approvals, and other necessary clearances before moving forward.

Largest Shareholder of Tata Capital 

The largest shareholder of Tata Capital, Tata Sons, which currently holds a 93% stake in the company, is expected to remain a key stakeholder even after the listing

₹1,504 Crore Rights Issue Also Approved

In addition to the IPO, the board has given the green light to a ₹1,504 crore rights issue for existing shareholders. The record date for this offering has been set as February 25, 2025. However, Tata Capital has yet to reveal the rights issue price and entitlement ratio.

First Tata IPO Since Tata Technologies

Tata Capital’s IPO marks a significant moment for the Tata Group, as it will be the first company from the conglomerate to go public since Tata Technologies‘ IPO in November 2023. That listing was historic as it was the first Tata Group IPO in nearly 2 decades, following Tata Consultancy Services (TCS).

Regulatory Requirement: Deadline for Listing by September 2025

Recently, Tata Capital was included in the upper-layer Non-Banking Financial Companies (NBFCs) by the Reserve Bank of India (RBI) for the financial year 2024-25. As per RBI regulations, the company is mandated to list by September 2025 to comply with regulatory guidelines.

Conclusion

Tata Capital’s IPO, coupled with a ₹1,504 crore rights issue, marks a major development for the Tata Group’s financial arm. While finer details regarding the OFS and rights issue pricing are awaited, this move aligns with regulatory mandates and signals a significant expansion in the group’s financial services.

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