Tata Capital Ltd. on Tuesday approved an initial public offering, including a fresh issue of up to 23 crore equity shares and an offer for sale from eligible shareholders. According to the Reserve Bank of India’s requirements, the financial services arm of the Tata Group must mandatorily list by September 2025.
The board also approved a rights issue of up to Rs 1,504 crore to the existing shareholders. The record date has been set as Feb. 25.
Tata Capital is the holding company for the financial services businesses of the Tata group and is registered with the Reserve Bank of India as a systemically important, non-deposit-taking, Core Investment Company.
The company is in the final stage of merging Tata Motors Finance with itself. Post merger Tata Motors will hold 4.7% stake in the the merged entity, while Tata Investment Corp. will hold around 2.7%. Multilateral financial institutions hold 1.8% and Employee Trust holds 1.1% stake in the merged entity.
At the time of merger with Tata Motors Finance, Tata Capital shares were valued at Rs 248.60 apiece, valuing the company at nearly Rs 98,000 crore upon merger.
The IPO is likely to be worth over $1 billion at current valuations and is likely to see Tata Motors, and possibly Tata Sons along with other Tata Group companies holding stake in Tata Capital, participating in the offer for sale.
In September 2022, the banking regulator classified Tata Capital as an upper-layer systemically important NBFC. This classification requires the company to comply with stricter regulatory norms, including mandatory listing within three years, that is, September 2025.
Once Tata Capital enters the stock market, it will become the 17th Tata Group company to be publicly traded.
. Read more on IPOs by NDTV Profit.According to the Reserve Bank of India’s requirements, the financial services arm of the Tata Group must mandatorily list by September 2025. Read MoreIPOs, Markets, Business, Notifications
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