Tata Capital IPO: Company Files Updated Confidential DRHP; Tata Investment Shares Surge 6.2%
Tata Capital IPO: Tata Sons is expected to offload up to 23 crore shares in the offer for sale (OFS), while International Finance Corporation (IFC) may sell 3.58 crore shares.
Tata Capital IPO: Tata Capital has filed an updated confidential draft red herring prospectus (DRHP) for its much-anticipated initial public offering (IPO), sparking a rally in Tata Investment Corporation's shares. The stock rose as much as 6.25% in intraday trade on Monday, hitting a high of Rs 6,950 on the NSE, before paring some gains to trade 4.76% higher at Rs 6,857 around 1:25 noon.
Investor sentiment turned bullish amid optimism that the Tata Capital IPO could unlock value and strengthen the Tata Group's presence in the listed financial services segment. The rally comes after two consecutive sessions of decline.
According to a report by NDTV Profit, Tata Sons is expected to offload up to 23 crore shares in the offer for sale (OFS), while International Finance Corporation (IFC) may sell 3.58 crore shares. The IPO will also include a fresh issue of up to 21 crore shares.
The move is in line with the Reserve Bank of India's directive requiring all 'upper layer' non-banking financial companies (NBFCs) to go public by September 2025.
Tata Group's financial services firm Tata Capital has reported strong financial performance ahead of the listing. In the March 2025 quarter, the company's consolidated profit after tax (PAT) surged 31% year-on-year to Rs 1,000 crore, while revenue from operations jumped nearly 50% to Rs 7,478 crore. For the full FY25, PAT rose to Rs 3,655 crore from Rs 3,327 crore in FY24, and total revenues climbed to Rs 28,313 crore from Rs 18,175 crore.
In April 2025, Tata Capital filed draft papers with markets regulator Sebi to launch its initial public offering. The draft papers for the $2-billion IPO was filed through a confidential pre-filing route.
At this size, the company is expected to be valued around $11 billion.
Tata Capital, identified by the Reserve Bank of India (RBI) as an upper-layer non-banking finance company (NBFC), has already secured board's approval to proceed with the initial share sale.
Notably, Tata Sons, the holding company of Tata Capital, owns a 92.83 per cent stake in the company.
If successful, this IPO will be the largest initial share sales in the country's financial sector. It will also mark the Tata Group's second public market debut in recent years, following the listing of Tata Technologies in November 2023.
This move is part of the company's efforts to comply with the Reserve Bank of India's (RBI's) listing requirements.
As per the RBI mandate, upper-layer NBFCs are required to list on the stock exchange within three years of being designated as such. Tata Capital was categorised as an upper-layer NBFC in September 2022.
Tata Capital's decision to opt for the confidential pre-filing route is part of a growing trend among Indian companies. This route allows companies to withhold public disclosure of details under the draft red herring prospectus (DRHP) until later stages.
In March, edtech unicorn PhysicsWallah also opted for the confidential filing route. In 2024, food delivery giant Swiggy and supermart major Vishal Mega Mart floated their IPOs after making confidential filings.
Earlier, online hotel aggregator OYO had taken the confidential filing route in 2023 but eventually did not proceed with its IPO. Tata Play, formerly known as Tata Sky, was the first company in India to utilise this option for an IPO in December 2022, and secured Sebi's observation letter in April 2023. Although it later withdrew from the public issue.
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July 21, 2025, 13:31 IST
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