Tata Capital IPO: A Fresh Issue Of Up To 21 Crore Shares
India’s financial landscape is witnessing a significant development with Tata Capital, a non-banking financial company (NBFC), gearing up for its initial public offering (IPO). The company has received approval from the Securities and Exchange Board of India (SEBI) and is in the process of filing its updated draft papers for the mandatory listing.
The IPO will see Tata Sons Pvt. selling up to 23 crore shares, while International Finance Corp. will be looking to offload another 3.58 crore shares. The company will also issue up to 21 crore shares via a primary raise.
Tata Capital’s Proposed Use of Funds
The company plans to use the fresh issue proceeds for augmenting its tier–I capital base to meet its ‘future capital requirements, including onward lending,’ arising out of the growth of the business. A portion of the proceeds will also be used towards meeting offer expenses.
This move is significant, as it will enable Tata Capital to strengthen its balance sheet and support its growth ambitions. The company’s current tier–I capital base stands at Rs 1,500 crore, and the fresh issue will help increase it to Rs 2,500 crore.
Tata Capital’s Financial Performance
In its latest financials, Tata Capital reported a profit of Rs 3,655 crore for fiscal 2025, a significant increase from Rs 3,327 crore in the previous fiscal. Its revenue surged to Rs 28,313 crore from Rs 18,175 crore, demonstrating the company’s growth potential.
Tata Capital’s financial performance has been driven by its diversified business portfolio, which includes lending, asset management, and wealth management services. The company’s ability to adapt to changing market conditions and its strong risk management practices have also contributed to its success.
Tata Capital’s IPO Process
The book running lead managers for the issue are Kotak Mahindra Capital Co., Axis Capital Ltd., BNP Paribas, Citigroup Global Markets India Pvt., and HDFC Bank Ltd. The company has not announced any plans for a pre-IPO placement ahead of its market debut.
Tata Capital has already raised Rs 1,500 crore via a rights issue in late February, and it plans to use the proceeds for further lending and improving its leverage ratios.
Conclusion
Tata Capital’s IPO is a significant development in India’s financial landscape, offering investors an opportunity to participate in the growth story of a well-established NBFC. With its strong financial performance and growth ambitions, the company is well-positioned to create value for its shareholders.
