Tata Capital, the financial services arm of the Tata Group, has filed preliminary documents with market regulator Sebi for a mega initial public offering (IPO) estimated at over Rs 15,000 crore.
According to an ET Market report, the Tata Capital’s IPO, which will be conducted under the confidential pre-filing route, will include both the issuance of new shares and an offer for sale (OFS) of shares by Tata Sons, which holds a 93% stake in the company.
Tata Capital, classified as an upper-layer non-banking finance company (NBFC) by the Reserve Bank of India (RBI), has already received approval from its board to move forward with the IPO. The offering will include up to 2.3 crore equity shares, comprising both fresh issues and shares sold by existing shareholders.
Under RBI regulations, Tata Sons and Tata Capital, as upper-layer NBFCs, are required to list their shares by September 2025. If successful, Tata Capital’s IPO will be one of the largest initial public offerings in India’s financial sector, and would mark the second public debut for the Tata Group in recent years following the listing of Tata Technologies in November 2023.
For the fiscal year 2024, Tata Capital reported a revenue of Rs 18,178 crore, reflecting a 34% year-on-year growth. The company’s loan book surpassed Rs 1 lakh crore, growing 40% year-on-year, while profits reached a record high of Rs 3,150 crore. The growth momentum continued into the first half of the current fiscal year, with profits increasing 21% to Rs 1,825 crore.
Tata Capital, a flagship subsidiary of Tata Sons, offers a range of financial services including commercial finance, consumer loans, wealth services, and the distribution and marketing of Tata cards.