Tata Group Initiates IPO Process for Tata Capital IPO
Introduction
TATA Capital IPO – More than a year after Tata Technologies went public, Tata Group is now working on launching an initial public offering (IPO) for its financial services arm, Tata Capital. Tata Capital is a non-banking financial services (NBFC) firm and a subsidiary of Tata Sons.
Details of the IPO TATA Capital IPO
Work has started on the TATA Capital IPO to comply with RBI’s regulations for upper layer NBFCs. The deal is expected to be over Rs 15,000 crore for TATA Capital IPO. Law firm Cyril Amarchand Mangaldas and investment bank Kotak Mahindra Capital are advising on the IPO.
Additional Information
Other investment banks may also be brought in for the deal, which is likely to involve a combination of primary and secondary share offerings. The move by Tata Group is in line with RBI’s requirement for upper layer NBFCs to list within three years of being notified.
Background Information for TATA Capital IPO
Tata Capital Financial Services merged with Tata Capital in January 2024 and is on the RBI’s list of upper layer NBFCs. The RBI announced a list of 16 NBFCs in the Upper Layer in September 2022. Tata Motors Limited, Tata Capital Limited, and Tata Motors Finance Ltd approved a merger in June.
Latest IPO from Tata Group
Tata Capital Limited is a systemically important, non-deposit-taking, Core Investment Company registered with the RBI. It has a diverse product portfolio in wholesale and retail finance segments. According to a report by Crisil Ratings, Tata Capital had an AUM of Rs 158,479 crore as of March 31, 2024.
Ownership Details
Tata Sons owns 92.83 percent of Tata Capital’s equity shares, with the rest held by other Tata group companies and trusts. Tata Sons has infused capital of Rs 6,097 crore in Tata Capital over the last five years, showing a focus on the lending business.