Funds raised through issue of fresh shares will be used to meet the company’s future capital requirements including onward lending
Tata Capital has filed updated draft red herring prospectus with market regulator SEBI for tapping the market with an initial public offering on Monday.
The IPO will consist issue of new shares and offer of sale by the existing investors. The Tata Sons-owned financial services company will issue up to 21 crore new shares, while existing shareholders will offload up to 26 crore shares.
Among existing investors, Tata Sons plans to sell up to 23 crore shares in the offering, while International Finance Corporation proposes to sell up to 3 crore shares.
Funds raised through issue of fresh shares will be used to meet the company’s future capital requirements including onward lending.
Kotak Mahindra Capital, BNP Paribas, Citigroup Global Markets are among the book-running lead managers of the offering.
Tata Capital’s IPO is expected to be in the region of about ₹18,000 crore, said sources.
In April, Tata Capital initially filed confidential IPO papers and received approval from SEBI last month to proceed. Companies are then required to submit an updated DRHP and allow time for public feedback before filing a final version.
The move by the Tata Group is in line with RBI’s mandatory requirement for ‘upper layer’ NBFCs to list in 3 years of being notified. The RBI guidelines mandates listing of large shadow banks and NBFCs including Tata Capital to list by September-end.
Published on August 4, 2025
