Tata Capital files for IPO, marks next big move by Tata Group
Tata Group
has filed for an
initial public offering
(IPO), draft papers filed with the regulator late on Monday evening showed.
The
financial services
company will issue up to 210 million new shares, while existing shareholders led by
Tata Sons
and also including World Bank arm
International Finance Corp
(IFC) will offload upto Rs 265.8 million shares, the draft red herring prospective made public by the company said.
Productivity Tool
Zero to Hero in Microsoft Excel: Complete Excel guide
By Metla Sudha Sekhar
View Program
Finance
Introduction to Technical Analysis & Candlestick Theory
By Dinesh Nagpal
View Program
Finance
Financial Literacy i e Lets Crack the Billionaire Code
By CA Rahul Gupta
View Program
Digital Marketing
Digital Marketing Masterclass by Neil Patel
By Neil Patel
View Program
Finance
Technical Analysis Demystified- A Complete Guide to Trading
By Kunal Patel
View Program
Productivity Tool
Excel Essentials to Expert: Your Complete Guide
By Study at home
View Program
Artificial Intelligence
AI For Business Professionals Batch 2
By Ansh Mehra
View Program
Of the shares offered for sale, Tata Sons, the majority shareholder with 88.6% stake will sell 230 million shares while IFC will sell 35.82 million shares out of its 71.64 million shares held or roughly half of the 1.80% it holds in the company.
The total share base of the company is at more than 4 billion shares, meaning the
equity dilution
post issue of fresh shares would be less than 1%.
Tata Capital's IPO will be one of the largest ever in the financial sector aggregating to Rs 17,200 crore. Tata Sons and other group company own more than 95% equity stake in the company. The company had filed for a confidential DRHP on April 5.
Live Events
In its DRHP the company said it will utilize the proceeds from the fresh issue of shares towards augmenting its capital base for future requirements including lending, Further, a portion of the proceeds from the fresh Issue will be used towards meeting offer expenses.
The IPO was necessitated because NBFC regulator
Reserve Bank of India
rules state that upper-layer NBFCs like Tata Capital and are required to list by September 2025.
The company had filed the DRHP through the confidential route in April which was approved by the markets regulator in June.
"Unless the regulator has some specific comments, it is fair to assume that the IPO will be ready to go in three weeks since all other regulatory doubts have been already cleared," said a person familiar with the details.
The company had made a net profit of Rs 3665 crore in the year ended March 2025 up 16% from Rs 3150 crore reported a year ago. The company had a Rs 2.20 lakh crore
loan book
at the end of March 2025 62% of which were to individuals.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
5 minutes ago
- Hans India
Vedanta continues winning street confidence: Brokerages forecast strong earnings ahead
New Delhi: Major global and Indian brokerages remain optimistic on Vedanta Ltd's performance for FY26, citing stronger LME pricing trends, cost discipline, deleveraging, and a resilient aluminium business among the key growth drivers. These firms have also taken note of the several growth projects scheduled for commissioning or completion in the next few quarters. JP Morgan noted that Vedanta's first quarter consolidated EBITDA was largely in line with estimates, with key segments such as aluminium, oil and gas, and power faring better than its expectations, leading to an overall segmental EBITDA beat. On the earnings trajectory for the current and next fiscal, the firm expects various ongoing initiatives at Vedanta to aid growth. "Vedanta's capacity expansion journey in the aluminium business as well as vertical integration should bring cost advantages. LME prices have also bottomed out and should continue to move higher into FY26-27, likely aiding earnings growth." Echoing similar views on LME prices and its potential benefit, Citi Research cited that Vedanta's parent (Vedanta Resources) leverage is at comfortable levels. It listed potential upside in medium-term aluminium LME prices, lower cost, and the demerger as another positive for Vedanta, while adding that aluminium globally has a limited supply growth. Mumbai-based Nuvama Institutional Equities expects Vedanta to deliver quarter-on-quarter EBITDA growth in Q2. "Q2FY26 EBITDA is likely to increase 10 per cent-plus quarter-on-quarter on the back of higher prices and lower aluminium cost of production. Major aluminium projects are likely to be commissioned in Q2FY26. We reckon net debt/EBITDA ex-Hindustan Zinc shall fall to 1.7x by FY26-end, compared to 2.7x in FY25. Demerger of the business is likely to be concluded in Q4FY26," the firm said in its report. The brokerage expects Vedanta's all major projects except coal blocks to be likely commissioned in the current fiscal, providing volume growth and cost reduction visibility for the company. UK-based Investec stated in its post-earnings report that Vedanta is a key beneficiary of depreciation in the Indian Rupee. Other near-term positives listed by the firm include declining alumina prices and the company offering attractive yields. The firm has retained its buy recommendation on Vedanta. Research firms like Kotak Institutional Equities and IIFL have cited factors like cost efficiencies and deleveraging at both Vedanta Ltd and its parent Vedanta Resources as beneficial factors. Vedanta's adjusted profit after tax jumped 13 per cent year-on-year to Rs 5,000 crore. The company clocked its highest-ever first-quarter EBITDA of Rs 10,746 crore, which was up 5 per cent year-on-year.
Deccan Herald
5 minutes ago
- Deccan Herald
Bosch plans up to Rs 700 crore capex in FY26
For the quarter ended June 2025, Bosch Limited posted its total revenue from operations of Rs 4,789 crore, an increase of 10.9% over the same quarter last year. The growth is driven by higher demand in the off-highway and passenger car segments.
Deccan Herald
5 minutes ago
- Deccan Herald
No directives to make Hindi mandatory in official communications: Govt
Data showed Rs 736.11 crore has been incurred from the budget allocated to the Department of Official Language between 2014-15 and 2024-25.
