Tata Capital, one of the key financial arms of the Tata Group, is preparing to launch its Initial Public Offering (IPO). The company has filed its updated Draft Red Herring Prospectus (DRHP) with SEBI and is looking to raise funds through a public issue. Investors are closely watching this IPO, not just because it’s backed by Tata Sons, but also because it marks a major move in the NBFC space.
About Tata Capital
Tata Capital is a non-banking financial company (NBFC) under Tata Sons. It offers a wide range of financial services including personal loans, business finance, wealth management, and infrastructure funding. The company plays a key role in the financial ecosystem of the Tata Group and is now preparing to go public after years of speculation.
Owner of Tata Capital
Tata Capital is wholly owned by Tata Sons, the main holding company of the Tata Group. With this IPO, Tata Sons is planning to offload a portion of its stake to the public. This is seen as a strategic move to unlock value and meet regulatory requirements for listing its financial arms.
IPO Details
- Issue Size: Up to 4.75 crore equity shares (face value ₹10 each)
- Offer for Sale (OFS): Tata Sons to sell 2.3 crore shares
- Fresh Issue: 2.45 crore shares to be issued by the company
- Expected Price Band: Yet to be confirmed, but market buzz suggests it may be 50% below unlisted market rates
- Lot Size: Not yet announced
- Issue Date: Awaiting final SEBI approval and launch timeline
The company has already filed the updated DRHP with SEBI, and further announcements regarding the price band and dates are expected soon. The IPO will be listed on both NSE and BSE.
Grey Market Premium (GMP)
As of now, there is no official grey market premium for the Tata Capital IPO, but early estimates suggest that the listing could generate considerable interest due to the Tata brand and scale of operations. The unlisted shares have been trading at a premium, though the DRHP hints the IPO price band could be lower.
Subscription Details
Since the IPO has not yet opened for subscription, we’ll need to wait for further announcements. However, given the brand value and interest from institutional investors, the issue is expected to attract high demand once it opens.
Tata Group Stake Post IPO
Post the IPO, Tata Sons will continue to hold a majority stake in Tata Capital. The public listing is seen as a move to align with RBI’s directives for large NBFCs to list and improve transparency in governance.
Disclaimer
This article is meant for informational purposes only. It does not constitute investment advice. Please consult your financial advisor before investing in any IPO or equity product.
