Tata Capital Files Confidential Pre-IPO Papers with Sebi, Plans Major Stake Sale

Tata Capital, the financial services arm of the Tata Group, has submitted a confidential pre-filing for its initial public offering (IPO) with the Securities and Exchange Board of India (Sebi), according to a Moneycontrol report. The move aligns with the group’s broader strategy to list its non-banking financial company (NBFC) while keeping sensitive business information under wraps. The IPO will include a mix of primary and secondary share offerings, with Tata Sons and the International Finance Corporation (IFC) expected to pare down their stakes. Tata Sons, which holds a dominant 92.83% in Tata Capital as of March 31, 2024, will remain the majority shareholder post-listing.

The company has roped in ten investment banks to advise on the listing, including Citi, JP Morgan, Kotak Mahindra Capital, Axis Capital, ICICI Securities, and others. The IPO proposal was approved by Tata Capital’s board in February and includes a fresh issue of up to 230 million shares. In addition to the IPO, the board also cleared a ₹1,504 crore rights issue, which Tata Sons is expected to fully subscribe to, further supporting the company’s capital requirements. The IPO is subject to market conditions and regulatory approvals.

Tata Capital, a systemically important Core Investment Company registered with the RBI, operates in both wholesale and retail finance segments. Its assets under management have grown significantly, reaching ₹1.58 lakh crore in FY24, up from ₹94,349 crore in FY22. With this confidential filing, Tata Capital joins other major Indian firms like Tata Play, Oyo, Swiggy, and PhysicsWallah in using the Sebi-approved pre-filing route introduced in 2022, designed to shield proprietary information from public and competitive scrutiny.

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