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.
Also read |
Sebi approves Tata Capital's confidential DRHP for Rs 17,200 crore IPO
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
35 minutes ago
- India.com
Meet Indian genius Pranjali Awasthi, built Rs 100 crore company at just 16, she is now making....
Meet Indian genius Pranjali Awasthi, built Rs 100 crore company at just 16, she is now making.... Women are breaking shackles and redefining success in every space around the world. And, Pranjali Awasthi is one of those changemakers. She is proof that young women are not only dreaming big, but they are doing it with tenacity, talent, and a vision for their futures. Born in India and based in the US, she began coding at the age of seven, landed research lab internships by 13, and launched her own AI startup, at just 16. Meet Indian genius Pranjali Awasthi, built Rs 100 crore company at just 16, she is now making…. According to her LinkedIn profile, Pranjali attended Doral Academy Charter High School from 2019 to September 2021, where she pursued a STEM-focused curriculum and completed her education up to the 10th grade. She is currently pursuing a Bachelor of Science (BS) in Computer Science at the Georgia Institute of Technology. Pranjali's journey is an amazing combination of passion and opportunity. She was born in India and at the age of 11, she moved to Florida. Her father, a computer engineer, encouraged and embraced her growing interest in coding. In a little more than a year, her startup was valued at approximately Rs 100 crore (almost $12 million), reported IndiaToday. This showcases her determination, talent, and vision at such a young age. She immersed herself in computer science and competitive mathematics during her school years, resulting in an internship at the Neural Dynamics of Control Lab at Florida International University. It was there that she was introduced to machine learning projects at a young age (before realizing she was working on research that aimed at identifying the different varieties of ADHD based on EEG data), reported IndiaToday. Pranjali created in Miami in January 2022 with the main goal of making research easy for everyone. The AI-driven platform is intended for end-users to extract and summarize information from academic content, PDFs, and other documents. The platform can search through many files at once, connect to cloud drives, and users can export their results into a CSV file. They have a free plan, and paid plans that include more advanced features and functionality to accommodate the user's advanced research needs. As per India Today, has garnered popularity and quickly raised approximately $450,000 (₹3.89 crore) in financing from investors including Backend Capital and Village Global. As of October 2023, it's valued at approximately ₹100 crore. Researchers are praising platform for reducing a substantial amount of repetitive R&D work by 75%, drastically saving time and energy in academic or technical efforts. Previously, she worked as Workshop lead at Upsilon Pi Epsilon, research intern at Swartz Center for Computational Neuroscience, Florida International University. She is also the co-founder of Dash. Pranjali is already onto her next big thing — Dash. She calls it, 'ChatGPT with hands.' Dash differs from previous AI chatbots in its ability to not just chat, but to also do things, bringing the element of automation to the conversation. Just last month, Dash reached the number one product on Product Hunt, which definitely be signified a positive signal from the tech community. Pranjali celebrated this milestone by sharing a LinkedIn post to announce the launch of Dash's official Discord server.
NDTV
an hour ago
- NDTV
Madhya Pradesh To Hike Ladli Behna Payout, Opposition Flags Towering Debt
Bhopal: Madhya Pradesh Chief Minister Dr Mohan Yadav has announced that the monthly financial assistance for women under the Ladli Behna scheme will be increased to Rs 1,500 from Diwali, which is in October. Currently, around 1.27 crore women beneficiaries receive Rs 1,250 per month. The move is being seen as a continuation of the BJP's flagship welfare initiative launched ahead of the 2023 state elections. Speaking to the media, Dr Yadav said, "The announcement in our Sankalp Patra is of Rs 3,000. We made it with full confidence and will fulfill it. The scheme began with Rs 1,000, then we increased it to Rs 1,250. From Diwali, it will be Rs 1,500." The hike will place an additional burden of Rs 310 crore on the state exchequer every month, pushing the annual cost of the scheme beyond Rs 22,000 crore. When the scheme was launched in 2023, 1.29 crore women were enrolled. The number rose slightly to 1.31 crore in October 2023 but has now come down to 1.27 crore. The government has admitted in the state Assembly that while new names are currently not being added, existing names are being removed based on age and other eligibility criteria. BJP MLA Bhagwan Das Sabnani defended the move, saying, "The Chief Minister is committed to empowering women. The Congress earlier mocked the scheme, but now they are afraid because the government is consistently fulfilling its promises." Congress leader Shailendra Patel criticised the financial viability of the scheme, stating, "The economic condition of Madhya Pradesh is deteriorating. No one knows how much more they will borrow. The state is practically being run on God's mercy." Rising Debt Poses Fiscal Challenges The state budget for 2025-26 stands at Rs 4.21 lakh crore. However, the government has already borrowed Rs 9,500 crore this financial year, taking the total outstanding debt to approximately Rs 4.31 lakh crore. This marks a 115 per cent increase in the state's debt over the last five years. In 2019, the total debt stood around Rs 2 lakh crore.
NDTV
an hour ago
- NDTV
Reise Moto Launches ECE-Certified Helden Helmet At Rs 3,499
Reise Moto has launched its latest helmet series, Helden, at Rs 3,499. Helden is compliant with ISI, DOT, and ECE standards and is available in three sizes. Reise Helden is built using an advanced polycarbonate composite and shell. It weighs 1,500 grams. This helmet features an aerodynamic design which minimises drag at high speeds. Integrated front vents channel fresh air into the helmet, while rear exhaust vents expel heat, keeping you cool and focused. It misses out a double-D ring lock but the micrometric chinstrap ensures adjustability. It misses out on factory-fitted, anti-fogging pinkock but the visor provides a wide-angle view of up to 108 degrees. The interior padding is breathable and hypoallergenic, allowing long hours on the saddle. Reise Helden gets a dedicated Bluetooth intercom speaker pocket, allowing seamless integration of communication devices. The liners can be withdrawn from the helmet and are washable. Helden is on sale in five colours, including gloss and matte monotone black. Reise Helden comes with a one-year manufacturer's warranty and can be purchased at the brand's website or retail store.
