Get ready for an exciting new IPO from the esteemed Tata Group! Tata Capital, a prominent company, is gearing up for its Initial Public Offering (IPO), and significant updates regarding its roadshow are emerging. This article delves into the details of the highly anticipated Tata Capital IPO, its massive 17,000 crore issue size, the fast-tracking process, and the expected timeline.
Understanding the IPO Process: From DRHP to Roadshows
The journey of any company’s IPO involves several critical steps. Initially, lead managers and bankers are hired to prepare and file the Draft Red Herring Prospectus (DRHP). Once the DRHP is filed and receives approval, a company planning a large IPO often conducts a roadshow before filing the final Red Herring Prospectus (RHP) with official dates. This intermediate step is crucial for garnering investor interest.
Tata Capital IPO: Current Status and Approval Timeline
The initial DRHP for Tata Capital’s IPO was filed on April 7th of this year and received approval on June 21st. Following this, a fresh DRHP was filed in July and is expected to receive approval in the first or second week of August. This indicates that approval for the IPO could be granted as early as this week.
The Crucial Role of Roadshows for Large IPOs
The ongoing investor roadshow for Tata Capital is being operated by its lead managers. Roadshows are vital, especially for large IPOs like Tata Capital’s 17,000 crore issue. With 50% of the shares reserved for Qualified Institutional Buyers (QIBs), roadshows serve as a platform to engage major investors such as mutual funds and Foreign Institutional Investors (FIIs).
These roadshows are not conducted on actual roads but through investment summits where institutional investors gather. They are thoroughly briefed about the company, its future plans, and potential investment opportunities. The primary goal is to attract significant investors, including potential anchor investors, which in turn boosts QIB subscription numbers. High QIB subscription positively impacts the IPO’s long-term performance and listing gains.
Anticipated Timeline and Market Buzz for Tata Capital IPO
As the roadshow concludes and the fresh DRHP receives approval, the final RHP is expected to be filed. This could lead to the official IPO dates being announced by the last week of this month or the first week of September. The Tata Capital IPO is highly anticipated, partly due to its association with the Tata Group. The success of Tata Technologies’ IPO, which provided excellent listing gains, has further amplified expectations for Tata Capital. Sustained market attention could contribute to continued momentum in its Grey Market Premium (GMP).
Tata Capital IPO: Issue Size and Share Details
The Tata Capital IPO is poised to be one of the biggest IPOs of 2025. The issue will comprise 21 crore equity shares as a fresh issue and 26.58 crore shares as an Offer for Sale (OFS), totaling 47.58 crore shares in the IPO.
Who Are the Sellers in the IPO?
In the Offer for Sale segment, Tata Sons, acting as a promoter through its non-banking financial company, will sell 23 crore equity shares. Additionally, the International Financial Corporation will offload 3.58 crore shares.
Utilization of Fresh Issue Proceeds
The fresh issue proceeds are intended to meet Tier-1 capital requirements and support the company’s onward lending activities.
Preparing for the Tata Capital IPO: Study and Demat Accounts
Prospective investors are encouraged to begin studying Tata Capital in depth. Developing conviction based on thorough research can help in planning your application strategy. To maximize your chances of allotment, it is advisable to open Demat accounts for all eligible family members. Applying for one slot from each family member’s Demat account can significantly increase the likelihood of receiving an allotment and benefiting from potential listing gains.
