Tata Capital, the financial services arm of the Tata Group, has filed final papers with market regulators to kick off its highly anticipated initial public offering (IPO) on October 6, aiming to raise ₹17,200 crore in one of India’s biggest stock market debuts this year. The offering includes a mix of new shares issued by the company and sales of existing shares by major owners Tata Sons and the International Finance Corporation (IFC), marking a key step in making the lender publicly traded to boost its growth and meet banking rules.
The IPO opens for bids on Monday, October 6, and closes on Wednesday, October 8, with big investors getting a chance to buy in early on Friday, October 3. It consists of 47.58 crore shares worth ₹10 each, split between a fresh issuance of 21 crore shares—bringing in new money for the company—and an offer for sale (OFS) of 26.58 crore shares by existing owners.
Through the OFS, Tata Sons plans to sell up to 23 crore shares, while IFC will offload up to 3.58 crore shares. This will help Tata Sons reduce its stake from 88.6% to around 70%, with IFC trimming its 1.8% holding. The move values Tata Capital at about $18 billion, a big jump from earlier estimates.
Tata Capital, a non-banking financial company (NBFC) offering loans, insurance, and wealth management, is following a Reserve Bank of India (RBI) rule that requires large lenders like it to go public within three years of being labeled a key player in the sector.
The fresh shares raised—estimated at ₹4,200 crore—will go toward strengthening the company’s core funds for more lending and business expansion. This is the Tata Group’s second big stock market entry this year, after Tata Technologies in 2023.
The IPO is led by banks like Kotak Mahindra Capital, Axis Capital, BNP Paribas, HDFC Bank, HSBC, ICICI Securities, IIFL Capital, J.P. Morgan India, and SBI Capital Markets, with MUFG Intime India handling registrations.
Unlisted shares of Tata Capital have dipped to around ₹735 recently, down 35% from an April high of ₹1,125, due to market jitters and high pricing worries.
Investors are watching closely, as this could be the largest public offering in India’s financial sector if it succeeds. Tata Capital’s strong backing from the Tata Group and focus on growth make it appealing, but success depends on market mood.
The final price band will be set soon, with shares listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) shortly after. For those eyeing a piece, bidding starts next week—stay tuned for details.
Via: CNBC