Tata Capital is getting ready to drag draft papers before SEBI for its much awaited $2 billion (₹17,000 crore) IPO; however, this depends on the final authority of the National Company Law Tribunal (NCLT) for merging with Tata Motors Finance. The sources reveal that the decision of the NCLT is most likely to be announced by the end of FY25, which will open the way for one of the biggest IPOs in the Indian financial services sector. After listing, Tata Capital is estimated to be worth $11 billion. The IPO will include 23 million equity shares that will include both primary issuance and an offer for sale (OFS) by existing shareholders. The company has already got the approval of the board for the share sale and is also raising funds through rights issue to enhance its capital base before the company goes public. Merger with Tata Motors Finance The Tata Motors Finance merger is a key precursor to the IPO. The deal was approved by the boards of Tata Capital, Tata Motors Finance and Tata Motors in June 2024 and is implemented via an NCLT scheme of arrangement. On completion, Tata Motors will own a 4.7% stake in the merged entity, while Tata Sons keeps a majority stake in the company with 92.83%. The CCI had already given its nod to the merger in September 2024. IPO Market Buzz Apart from that, there is one more company – HDB Financial Services, a HDFC Bank’s company, which is also getting ready for an IPO of $1.5 billion (₹12,500 crore). In the meantime, Tata Capital has hired Cyril Amarchand Mangaldas and Kotak Mahindra Capital as advisors; when the regulatory clearance is received, the IPO is likely to be a big market event.
Tata Capital Eyes $2 Billion IPO
