Tata Capital IPO: Everything You Should Know – Financials, Share Sale, Issue Size and Listing Date
A subdivision of Tata Group, Tata Capital, is preparing to make its IPO announcement. Alongside SEBI, NSE and BSE, Tata has submitted its draft documents through the confidential pre-filing method. Tata Capital is an NBFC and a subsiditary of Tata Sons, which is the company’s mother entity with a firm hold of 92.83% in Tata Capital.
Let us summarize the prominent components concerning the Tata Capital IPO which require your attention.
Expected Valuation and Size of IPO:
Around 12 billion dollars is the forecasted value for Tata Capital IPO. The IPO is therefore predicted to stand just above 3 billion dollars. As a result of these estimations, it may become one of the largest IPOs in the NBFC sector during this decade.
How Many Shares Will Be Offered:
shares of two categories will be present with the both:
- New equity shares offered by the company
- OFS From present shareholders.
The total number of equity shares anticipated to be provided in this IPO is 2.3 crore.
When is the Initial Public Offering Expected to Launch?
Tata Capital does not have a specific date for their IPO, but they are expected to make it public by September 2025. The rumor mill suggests the following:
- Tata Capital was designated an “Upper Layer NBFC” by the Reserve Bank of India (RBI) in September 2022.
- Tata Capital falls within the Lower Layer NBFC category of regulated companies and the RBI mandates that such entities must go public within 3 years of being classified by the central bank.
- Therefore, the IPO deadline is being set for September 2025 at the latest.
Performance of Tata Capital’s Business Operations
Tata Capital’s business, has performed remarkably well over the past few years:
- Revenue (FY 2024): ₹18,178 crore, representing a 34% increase year-on-year.
- Net profit reached an all time high of ₹3,150 crore.
During the first two quarters of FY 2025, also showed strong performance with milestones like:
In the first two quarters, Tata Capital reported a 21% increased net profit amounting to ₹1,825 crore.
What Does Confidential Pre-Filing Entail?
In Tata Capital’s case, the IPO was done using a confidential pre-filing process. This allows certain companies to:
- Maintain privacy of sensitive information related to business operations and financials until the initial public offering is made.
- If the market conditions are not favorable, withdraw the draft filing without any public disclosure.
- During the inception phases of the project, safeguard sensitive information from competitors.
This does not comply with the standard DRHP (Draft Red Herring Prospectus) which upon filing transforms into a public document.
Also Read : How to Make Money in the Stock Market: A Practical Guide to Annual Trading and Beyond
Conclusion
The Tata Capital IPO represents a noteworthy occurrence in the Indian Capital Market. Given its robust financials and Tata Group’s support, this IPO is positioned to receive considerable attention from investors. Make sure to follow their news closely, particularly in relation to the September 2025 deadline date.