Tata Capital files for ₹17,000cr IPO: Check listing schedule
What's the story
Tata Capital, the Tata Group's flagship financial services company, has filed draft papers with the Securities and Exchange Board of India(SEBI) for an initial public offering (IPO). The proposed offer size is 47.58 crore shares, including a fresh issue of 21 crore shares and an offer-for-sale (OFS) of up to 26.58 crore shares by existing shareholders.
Share distribution
Major stake reduction by Tata Sons
Tata Sons intends to offload up to 23 crore shares in the IPO, reducing its stake below the 75% threshold. The International Finance Corporation (IFC) also plans to sell up to 3.58 crore shares as part of this offering. Currently, Tata Sons holds an 88.6% stake in Tata Capital on a fully diluted basis, while other Tata Group companies hold another 7%.
Fund utilization
Fresh issue to fund onward lending
The proceeds from the fresh issue of shares will be used to meet Tata Capital's future capital requirements, including onward lending. A part of these funds will also go toward meeting offer expenses. This move comes after the Reserve Bank of India (RBI) classified Tata Capital as an upper-layer systemically important non-banking financial company (NBFC) in September 2022, requiring it to go public within three years.
Company profile
Third-largest NBFC by loan book
With an asset under management (AUM) of ₹2.27 lakh crore, Tata Capital is the third-largest NBFC in terms of loan book. The company has been one of the fastest-growing large, diversified NBFCs with a presence across India through its 1,496 branches. Apart from financial services, Tata Capital also deals in distribution of third-party products, wealth management services and private equity investments. The highly anticipated IPO is expected to launch and list by September.