Tata Capital information draft papers for $2 billion IPO by confidential pre-filing route

Tata Group monetary companies agency Tata Capital has filed draft papers with markets regulator Sebi for IPO. File

Tata Group monetary companies agency Tata Capital has filed draft papers with markets regulator Sebi for a $2 billion preliminary public providing (IPO) by a confidential pre-filing route.

At this measurement, the corporate is predicted to be valued round USD 11 billion, in accordance with sources.

In a inventory alternate submitting, Tata Capital stated, “The corporate has filed the Pre-filed Draft Purple Herring Prospectus dated April 4, 2025, beneath the Securities and Change Board of India (Problem of Capital and Disclosure Necessities) Laws, 2018, with Sebi, BSE, and NSE in reference to its Preliminary Public Providing of fairness shares of face worth of Rs 10 every.”

The IPO will encompass a contemporary difficulty of fairness shares, together with a proposal on the market (OFS) by sure shareholders.

In response to a disclosure made to inventory exchanges final month, the proposed IPO will embrace 2.3 crore fairness shares by a contemporary difficulty and OFS by current shareholders.

Final month, sources instructed PTI that Tata Capital’s IPO measurement may very well be $2 billion (over ₹17,000 crore), valuing the corporate at round $11 billion.

Tata Capital, recognized by the Reserve Financial institution of India (RBI) as an upper-layer non-banking finance firm (NBFC), has already secured board’s approval to proceed with the preliminary share sale.

Notably, Tata Sons, the holding firm of Tata Capital, owns a 92.83 per cent stake within the firm.

If profitable, this IPO would be the largest preliminary share gross sales within the nation’s monetary sector. It should additionally mark the Tata Group’s second public market debut lately, following the itemizing of Tata Applied sciences in November 2023.

This transfer is a part of the corporate’s efforts to adjust to the Reserve Financial institution of India’s (RBI’s) itemizing necessities.

As per the RBI mandate, upper-layer NBFCs are required to listing on the inventory alternate inside three years of being designated as such. Tata Capital was categorised as an upper-layer NBFC in September 2022.

Tata Capital’s resolution to go for the confidential pre-filing route is a part of a rising development amongst Indian corporations. This route permits corporations to withhold public disclosure of particulars beneath the draft crimson herring prospectus (DRHP) till later phases.

Final month, edtech unicorn PhysicsWallah additionally opted for the confidential submitting route. In 2024, meals supply large Swiggy and supermart main Vishal Mega Mart floated their IPOs after making confidential filings.

Earlier, on-line lodge aggregator OYO had taken the confidential submitting route in 2023 however ultimately didn’t proceed with its IPO. Tata Play, previously often known as Tata Sky, was the primary firm in India to utilise this feature for an IPO in December 2022, and secured Sebi’s statement letter in April 2023. Though it later withdrew from the general public difficulty.

Markets consultants consider that the confidential pre-filing route gives flexibility and reduces stress on corporations to go public. Not like the standard route, the place IPOs have to be launched inside 12 months of Sebi’s approval, the pre-filing route permits corporations to drift an IPO inside 18 months from Sebi’s last feedback.

This route additionally gives the pliability to regulate the first difficulty measurement by as much as 50% till the up to date DRHP stage, they added.