Tata Group's Tata Capital is one step closer to listing on Dalal Street, after the company approved its initial public offering (IPO) plans on Tuesday.
Tata Capital will issue 23 crore new shares, while some existing shareholders will exit via the offer for sale (OFS) route.
The Tata Group began preparing for the IPO in December and began discussions with certain bankers. Following a meeting, the conglomerate directed Kotak Investment Banking officials to begin the process.
Tata Sons has a 93% stake in Tata Capital.
This will be the Tata Group's second initial public offering in two decades, following the successful listing of Tata Technologies in November last year.
The RBI named Tata Capital Financial Services an upper-tier systemically important NBFC in September 2022, requiring it to complete listing within three years and put stronger regulatory frameworks in place.
Three investment and advisory companies—Tata Securities, Tata Capital Singapore, and its private equity division—as well as the group's three lending companies—Tata Capital Financial Services, Tata Capital Housing Finance, and Tata Cleantech Capital—are all held by Tata Capital.
Because it provides funding for different companies within the conglomerate, Tata Capital is strategic to the Tata Group.
The conglomerate is a financial services provider that offers a variety of goods and services to people, companies, and organizations. These include credit cards, investment banking, life insurance, personal loans, and real estate loans.
