Tata Sons-backed non-banking financial company (NBFC), Tata Capital Ltd, filed draft papers on Monday for an initial public offering (IPO).
Tata Capital’s IPO consists of a combination of fresh issuance and an offer for sale (OFS), amounting to approximately 47.58 crore equity shares. The company will be issuing up to 21 crore new shares and the existing shareholders are looking to offload up to 26.58 crore shares. Tata Sons Private Ltd, the promoter of the company, is planning to sell up to 23 crore shares in the IPO, while International Finance Corporation (IFC) has proposed to sell up to 3.58 crore shares.
The issue size is estimated at around Rs 17,000 crore, as per Prime Database.
The shares will be issued at a face value of Rs 10 per share. The company will use the proceeds from the fresh issue to augment its tier-1 capital base to meet its future capital requirement, including onward lending.
Tata Capital is the third largest diversified NBFC in the country. The Reserve Bank of India has classified it as a systemically important NBFC, which requires stricter regulatory adherence. As per the RBI regulations, Tata Capital is required to be listed by the end of September.
Tata Capital, the flagship financial services company of the Tata Group, is a subsidiary of Tata Sons Private Limited. It is primarily engaged in the lending business which comprises retail finance, SME finance and corporate finance.
Tata Capital’s consolidated book size increased to Rs 2,21,950.37 crore as at March 31, 2025 from Rs 1,57,760.55 crore as at March 31, 2024. During FY25, it recorded consolidated total income of Rs 28,369.87 crore as against Rs 18,198.38 crore in FY24, an increase of about 55.89 per cent.
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On a standalone basis, Tata Capital’s recorded gross income of Rs 21,940.08 crore in FY2024-25, compared to Rs 13,309.11 crore in FY24. Profit after tax during the year was Rs 2,594.28 crore as against Rs 2,492.45 crore.
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