Tata Capital Taps Market To Raise Rs 15,000 Crore Through IPO

Tata Capital IPO: After a high number of mega listings in 2024, calendar year 2025 is all set to see the Tata Group company, Tata Capital, joining the club.

The company has tapped the primary market route to raise over Rs 15,000 crore through an initial public offering (IPO), and has also filed draft papers with the market regulator for the same.

Notably, the public issue has been filed under the confidential pre-filing route, according to a report in the Economic Times.

There is likely to be a fresh issuance of shares along with an offer-for-sale (OFS) component by Tata Sons. Notably Tata Sons owns 93 per cent equity stake in the company.

The public issue is likely to be valued at as much as $11 billion. Additionally the public issue is expected to comprise 23 million equity shares, with a face value of Rs 10 each.

If Tata Capital successfully raises the money through the public issue, it will become one of the biggest fundraises by a financial services company in the history of the Indian primary market. It will also be Tata Group’s D-street debut after the listing of Tata Technologies in November 2023.

Earlier in 2022, Tata Capital was classified as an ‘upper-layer’ Non-Banking Financial Company (NBFC). The Reserve Bank of India has directed upper-layer NBFCs to list on the exchanges within three years of being designated.

What is Pre-Filing

The company has filed papers via the confidential pre-filing route with the Securities and Exchange Board of India (Sebi).

This method of filing is gaining popularity among Indian companies. The pre-filing method allows companies which plan to list their shares, to submit their draft papers confidentially to the Sebi. The method helps the companies in keeping sensitive information private till the updated draft red herring prospectus (DRHP) is publicly available.

Additionally, the companies get extra time (18 months) to launch their public issues compared to the traditional method of DRHP filing, which has a timeframe of 12 months after Sebi's approval.

The filing for the public issue comes at a time when the Indian stock market is witnessing significant declines. Investors are expected to closely monitor the primary market space to see how Tata Capital proceeds with its public issue.