Tata Capital filed updated draft-papers with SEBI: Plan to raise ₹ 15 thousand crores from the issue, Tata Sons will sell its 23 crore shares
Tata Capital, the financial services company of the Tata Group, is preparing to bring its Initial Public Offering i.e. IPO. According to reports, the company has filed updated draft red herring prospectus (DRHP) i.e. draft papers with market regulator Securities and Exchange Board of India (SEBI) for the IPO.
The reason for the enthusiasm among investors is the rising expectations about the IPO of Tata Capital. The market believes that this IPO will increase the value of Tata Group’s financial services companies and further strengthen the group’s presence in the listed financial services sector.
The company wants to raise ₹ 15 thousand crores from IPO
According to the report of NDTV Profit, in the IPO of Tata Capital, Tata Sons will sell its 23 crore shares in the Offer for Sale (OFS), while International Finance Corporation will sell 3.58 crore shares. Apart from this, the company is also planning to issue 21 crore new shares. The company wants to raise Rs 15 thousand crore from the IPO.
The company had filed draft papers with SEBI for the IPO 4 months ago. According to media reports, this pre-filing with SEBI for the IPO of Tata Capital Financial Services Limited was confidential.
In November 2022, SEBI introduced the confidential pre-filing route. Under this, companies get help in filing their DRHP without making their important business details public.
Tata Sons holds about 93% stake in Tata Capital
Tata Sons is the holding company of Tata Capital. It holds about 93% stake in Tata Capital. The remaining stake is held by other companies and trusts of the Tata Group. Tata Capital has been given the status of Upper Layer NBFC (Non Banking Financial Company) by the Reserve Bank of India (RBI).
Appointed 10 investment banks for listing
Tata Capital has appointed 10 investment banks as advisors for listing. These banks include Kotak Mahindra Capital, Citi, JP Morgan, Axis Capital, ICICI Securities, HSBC Securities, IIFL Capital, BNP Paribas, SBI Capital and HDFC Bank.
The company joined NBFC in September 2022
As per RBI’s order, it is necessary for the upper layer NBFC to be listed in the stock markets within 3 years of getting this recognition. Tata Capital qualified in the upper layer NBFC in September 2022. That is, under the RBI rules, Tata Capital has time till September 2025 to get itself listed in the stock market.
