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Tata Capital is expected to file preliminary documents with the Securities and Exchange Board of India (SEBI) for its $2 billion (₹17,000 crore) Initial Public Offering (IPO) only after receiving final approval from the National Company Law Tribunal (NCLT) for its merger with Tata Motors Finance, according to sources.

At this valuation, Tata Capital is projected to be worth approximately $11 billion.

Awaiting NCLT Clearance for Merger

The final order from NCLT is anticipated by the end of FY25, paving the way for Tata Capital’s public listing. The Reserve Bank of India (RBI) had classified Tata Capital as an upper-layer Non-Banking Financial Company (NBFC) in September 2022, making its stock market listing mandatory within three years.

IPO Structure and Fundraising Plans

  • Tata Capital has board approval for the IPO.
  • The public issue will consist of 2.3 crore equity shares through a fresh issue and Offer for Sale (OFS) by existing shareholders.
  • In addition to the IPO, the company plans to raise funds via a rights issue to strengthen its financial position before the listing.

If successful, this will be one of the largest IPOs in India’s financial sector, following the listing of Tata Technologies in November 2023.

Advisors and IPO Filing Timeline

  • Cyril Amarchand Mangaldas (Legal Advisor)
  • Kotak Mahindra Capital (Investment Banker)

The Draft Red Herring Prospectus (DRHP) will be filed with SEBI only after the NCLT clears the Tata Motors Finance merger, sources confirmed.

Tata Motors Finance Merger Progress

  • Competition Commission of India (CCI) approved the merger in September 2024.
  • Tata Capital, Tata Motors Finance, and Tata Motors boards approved the merger in June 2024.
  • Tata Motors will hold a 4.7% stake in the merged entity.

During Tata Motors’ Q3 earnings call, Group CFO P.B. Balaji confirmed that the creditors’ meeting for Tata Motors Finance is complete, and final NCLT orders are expected soon.

Market Trends: HDB Financial Services Also Prepares for IPO

Apart from Tata Capital, HDB Financial Services, an upper-layer NBFC owned by HDFC Bank, filed its ₹12,500 crore IPO draft papers in October 2024.

Tata Sons’ Shareholding

  • Tata Sons holds a 92.83% stake in Tata Capital, making it the primary promoter of the company.

As the IPO process progresses, Tata Capital’s listing will not only fulfill RBI’s regulatory requirements but also mark Tata Group’s continued expansion in the public market.


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