Tata Capital's BIG move, files papers at SEBI for mega Rs 150000000000 IPO; Check details here

The Tata Group's financial services arm Tata Capital has filed draft papers with the Securities and Exchange Board of India -- the capital market regulator commonly known as SEBI -- to launch its massive Rs 15,000 crore initial public offering (IPO).
The papers say that Tata Sons and International Finance Corporation (IFC) would reduce their stake in Tata Capital through an offer for sale (OFS), according to reports.

The company has filed the draft papers through the confidential route, engaging several major entities as advisers such as Kotak Mahindra Capital, Citi, JP Morgan, Axis Capital, ICICI Securities, HSBC Securities, IIFL Capital, BNP Paribas, SBI Capital, and HDFC Bank.

"The issue will be a combination of primary and secondary issues of shares; Tata Sons and investor IFC will pare stake, with greater participation from the former," a source told Moneycontrol.com on the condition of anonymity.

Tata Capital an upper-layer NBFC
Tata Capital, identified as an upper-layer non-banking finance company (NBFC) by the Reserve Bank of India (RBI), had received its board's approval to float the initial share sale some time back.

The proposed IPO would comprise 2.3 crore equity shares by way of a fresh issue along with the OFS by existing shareholders, as per a disclosure made to stock exchanges. Apart from the IPO, Tata Capital has announced plans to raise funds through a rights issue to further bolster its financial position before the public listing.

One of biggest IPOs
If successful, this would be one of the biggest IPOs in India's financial sector. This would also be the Tata Group's second public market debut in recent years after the listing of Tata Technologies in November 2023. The move is part of the company's efforts to comply with the central bank's listing requirements.

As per the RBI mandate, upper-layer NBFCs are required to list on the stock exchange within three years of being designated as an upper-layer NBFC. Tata Capital was categorised as an upper-layer NBFC in September 2022.
Tata Sons is a holding company of Tata Capital, owning a 92.83% stake.

Another IPO coming up
Apart from Tata Capital, another upper layer NBFC -- HDB Financial Services, owned by HDFC Bank -- is also gearing up to launch its IPO. The company filed its draft papers in October to garner Rs 12,500 crore through the initial share sale.

(With inputs from news agency PTI).