Tata Capital files updated DRHP for IPO of up to 47.58 crore shares

Tata Capital Limited on Monday (August 4) filed an updated Draft Red Herring Prospectus (DRHP) for an Initial Public Offering (IPO) comprising up to 47.58 crore equity shares.

The offer includes a fresh issue of up to 21 crore equity shares of face value ₹10 each and an offer for sale (OFS) of up to 26.58 crore shares by existing shareholders.

Promoter Tata Sons has proposed to offload up to 23 crore shares through the OFS route. Additionally, Finance Corporation plans to sell up to 3 crore shares in the IPO.

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The book running lead managers to the offer are Kotak Mahindra Capital, Axis Capital Limited, BNP Paribas, Citigroup Global Markets India Private Limited, HDFC Bank Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, IIFL Capital Services Limited, J.P. Morgan India Private Limited, and SBI Capital Markets Limited.

Tata Capital, a subsidiary of Tata Sons, operates as a diversified NBFC offering products such as commercial finance, consumer loans, wealth management, and Tata Cards. It currently serves over 5.2 million customers across 900 branches.

Tata Sons has provided consistent capital backing to Tata Capital, injecting ₹6,000 crore over the past six years, including ₹2,000 crore in FY24 and ₹500 crore in FY23.

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As of March 31, 2024, Tata Sons directly owned 92.83% of Tata Capital Limited, while the balance stake was held by other Tata Group entities and IFC. Tata Sons' shareholding in Tata Capital is unlikely to fall below 75% in the foreseeable future following Tata Capital's planned public listing.

On February 25, 2025, the Tata Capital board approved the IPO plan and said it will comprise a fresh issue of up to 230 million shares and an offer for sale of equity shares by its existing shareholders. The IPO is subject to market conditions and regulatory clearances, the company said.