Tata Capital IPO: Latest Updates, Approvals, and Expected Listing Timeline
Stay informed about the latest developments regarding the Tata Capital IPO. This article delves into the recent updates and the evolving expectations surrounding this anticipated public offering.
Recent Developments and Approvals
The Tata Capital IPO journey began with the filing of its Draft Red Herring Prospectus (DRHP) with SEBI on April 7th. Following this initial filing, the company received approval for its DRHP on June 21st. While official dates and the price band for the IPO have not yet been announced, an updated DRHP has been filed, providing further insights into the offering.
Why the Updated DRHP?
Tata Sons, the parent company, recently filed an updated DRHP for Tata Capital. This updated document, while containing many similarities to the previous filing, incorporates details related to the incorporation purpose, the sale of shares, and updated quarterly numbers for June.
RBI Mandate and Listing Deadline
Tata Capital is recognized by the Reserve Bank of India (RBI) as an NBFC (Non-Banking Financial Company) and has been categorized under the Upper NBFC category. This classification comes with a crucial deadline: the company is required to be listed on both BSE and NSE by September 2025. This regulatory mandate plays a significant role in the urgency and timeline of the IPO.
IPO Structure and Offer Details
The total offer for sale in the Tata Capital IPO is expected to comprise approximately 475 million shares. Within this, the financial services company plans to issue around 210 million shares. Existing shareholders are expected to offload about 265 million equity shares. Specifically, Tata Sons plans to offer 230 million shares, and the International Financial Corporation (IFC) intends to sell 35 million shares through this IPO.
Key Players: Lead Managers
The lead managers playing a pivotal role in the Tata Capital IPO include Kotak Mahindra Capital, BNP Paribas, and Citi Group Market Global. These firms have been responsible for preparing the DRHP and will also determine the Red Herring Prospectus (RHP) and the final price band for the IPO.
Anticipated Timeline and Investor Preparation
The DRHP was initially filed in April, with regulatory approval received last month. Reports from sources familiar with the matter suggest that the IPO could launch by the second half of September, aligning with the RBI’s September 2025 listing deadline. The updated DRHP filed recently is expected to receive approval within one to two weeks, after which the company will officially announce the dates and price band through its RHP.
Investors are advised to prepare in advance by ensuring their demat accounts are ready. If the valuation proves attractive, the IPO is expected to be subscribed multiple times over. Stay tuned for further updates as they become available.
