Non-Banking Financial Services Firm and Tata Sons subsidiary have filed documents with market regulator SEBI through a confidential pre-filing route. On 25 February, the board of Tata Capital approved the IPO scheme.
Tata Group’s new IPO
The Tata group, which serves from salt to software, is preparing to bring an IPO of another company. The size of this IPO will be more than Rs 15,000 crore. This Tata company has presented documents to SEBI. The company is Tata Capital, which provides financial services. Non-Banking Financial Services Firm and Tata Sons subsidiary have filed documents with market regulator SEBI through a confidential pre-filing route.
How many shares will be issued through IPO?
On 25 February, the board of Tata Capital approved the IPO scheme. Through this IPO, 23 crore shares will be released afresh. Equity shares will be issued by existing shareholders under the Offer for Sale (OFS). According to the company, IPO will be released on the basis of stock market conditions and regulatory approval. The clear date of the IPO has not been announced yet.
Which firm has a stake in Tata Capital?
Tata Sons stakes 92.83% in Tata Capital Limited as of 31 March. Apart from this, other Tata group companies and IFCs also have a stake in it. It was reported earlier that the Tata Capital would submit documents by the end of March or by early April using the confidential pre-filing system.
Help from these banks for IPO
The company has availed 10 investment banks including Kotak Mahindra Capital, City, JP Morgan, Axis Capital, ICICI Securities, SBC Securities, IIFL Capital, BNP Pariba, SBI Capital and HDFC Bank services for advisory assistance in IPO.
Why is this Tata IPO coming?
This decision of the Tata Group is in line with RBI’s directive, which has directed the top NBFC to become public within three years of the notification, which is until September 2025. Tata Capital Financial Services, which is now merged with Tata Capital by January 2024, is included in the regulator list.
Additionally, in June 2024, Tata Motors Limited (TML), Tata Capital Limited (TCL) and Tata Motors Finance Limited (TMFL) approved the merger with TCL’s TMFL through NCLT Yojana. As part of the merger agreement, TCL will release its equity share to TMFL shareholders, giving TML 4.7 percent stake in the joint unit.
What does Crisil Ratings Report say?
A report by Crisil Ratings states that Tata Sons has invested a total of Rs 6,097 crore in Tata Capital Limited in the last five financial years. This includes Rs 2,500 crore in FY 2019, Rs 1,000 crore in FY 2020, Rs 594 crore in FY 2023 and Rs 2,003 crore in FY 2024, which reflects the growing focus on its loan business of the group. With this decision, Securitization, Tata Capital, Tata Play, Oyo, Swiggy, Vishal Mega Mart, Credila Financial Services, Indira IVF and Physicswacks have become the eighth largest Indian company to choose the pre-filing route.
The post is bringing another Tata company IPO, 15,000 crores will be size, know when will come first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
