Tata Capital Files for Mega IPO

Tata Capital, the financial services arm of the esteemed Tata Group, has taken a significant step towards its highly anticipated initial public offering (IPO) by submitting preliminary documents to the Securities and Exchange Board of India (Sebi). This move underscores the company's ambition to make a monumental debut in the financial markets with an IPO estimated at over Rs 15,000 crore.

Details of the IPO

The IPO will be conducted under the confidential pre-filing route and includes both the issuance of new shares and an offer for sale (OFS) by Tata Sons, which holds a dominant 93% stake in Tata Capital. With approval already secured from its board, the company is set to offer up to 2.3 crore equity shares, blending fresh issues with shares from existing stakeholders.

Regulatory Requirements and Market Impact

As per Reserve Bank of India (RBI) regulations, both Tata Sons and Tata Capital, classified as upper-layer non-banking finance companies (NBFCs), are mandated to list their shares by September 2025. A successful IPO would not only comply with these requirements but also position Tata Capital's offering as one of the largest in India's financial sector history, following the Tata Group's recent public debut of Tata Technologies in November 2023.

Financial Performance and Services

Highlighting its robust financial health, Tata Capital reported a revenue of Rs 18,178 crore for the fiscal year 2024, marking a 34% year-on-year growth. The company's loan book exceeded Rs 1 lakh crore, with a 40% annual growth, while profits soared to a record Rs 3,150 crore. The first half of the current fiscal year saw profits climb by 21% to Rs 1,825 crore, showcasing sustained growth momentum. As a flagship subsidiary of Tata Sons, Tata Capital offers a comprehensive suite of financial services, including commercial finance, consumer loans, wealth services, and Tata cards distribution.