Tata Capital, Tata Group’s non-banking financial services firm, has submitted papers to the Securities Exchange Board of India (SEBI) through the confidential pre-filing route, for its initial public offering (IPO), of an estimated value of over Rs 15,000 crore, market sources said.
The move is part of the group’s strategy to list its financial arm while safeguarding sensitive business information.
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It is also learnt that Tata Capital has engaged 10 investment banks as advisors for the listing. The banks include Kotak Mahindra Capital, Citi, JP Morgan, Axis Capital, ICICI Securities, HSBC Securities, IIFL Capital, BNP Paribas, SBI Capital and HDFC Bank.
The IPO will consist of a combination of primary and secondary share offerings, with Tata Sons and investor International Finance Corporation (IFC) of the World Bank Group, planning to reduce their stakes.
On February 25, Tata Capital’s board approved the IPO, comprising a fresh issue of up to 230 million shares along with an offer for sale by existing shareholders. The IPO is subject to market conditions and regulatory approvals.
As of March 31, 2024, Tata Sons directly owned 92.83 per cent of Tata Capital, while the remaining shares were held by other Tata Group entities and IFC. The public listing is not expected to reduce Tata Sons’ stake below 75 per cent in the near future, according to a recent Fitch Ratings report.
