Tata Capital IPO coming next month? Sebi clears road for Rs 17,200 crore issue
Tata Capital is closing in on a blockbuster Rs 17,200 crore IPO, after receiving regulatory clearance for its confidential draft prospectus, setting the wheels in motion for a potential July launch and meeting a key Reserve Bank of India listing deadline for large non-bank lenders.
The Securities and Exchange Board of India (Sebi) has approved the non-banking finance company's draft offer documents, The Economic Times reported, citing people familiar with the matter. The Tata Sons subsidiary is now expected to file its red herring prospectus (RHP) early next month, a procedural step that precedes the share sale. An email sent to Tata Capital seeking comment remained unanswered until Friday press time.
Tata Capital filed its confidential draft red herring prospectus (DRHP) on April 5. Following Sebi's approval, the updated draft must be published publicly on the regulator's website before the company can proceed with the RHP. The IPO is expected to include both a fresh issue of shares and an offer for sale by Tata Sons, which holds a 93% stake in the firm.
RBI mandate looms over timeline
Under RBI norms, Tata Capital and Tata Sons are categorised as 'upper-layer NBFCs'- a classification that requires listing within three years and adherence to stricter compliance standards. In January, the RBI identified 15 such systemically important NBFCs for FY25, including Tata Capital, with a September 2025 listing deadline in place.
Upper-layer NBFCs are selected based on asset size, interconnectedness and other regulatory criteria and are subject to more rigorous supervision.
Strong financial footing
Tata Capital has reported robust earnings ahead of the planned IPO. For the March quarter, consolidated net profit rose 31% year-on-year to Rs 1,000 crore, while revenue surged nearly 50% to Rs 7,478 crore. For FY25, the company posted a net profit of Rs 3,655 crore compared with Rs 3,327 crore in the previous year. Annual revenue rose to Rs 28,313 crore from Rs 18,175 crore.
The company's unlisted shares have gained 13.5% in the past six months and are trading at around Rs 1,050 apiece, implying a valuation of nearly Rs 3.8 lakh crore.
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Sebi approves Tata Capital's confidential DRHP for Rs 17,200 crore IPO
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