Tata Capital, a prominent financial services arm of the Tata Group, has announced plans to launch a substantial Initial Public Offering (IPO). The company aims to raise Rs 15,511 crore through this public listing, marking a significant milestone in its corporate journey.

IPO Details

The IPO is scheduled to open for subscription from October 6 to October 8. Tata Capital has set the price band for its shares at Rs 310-326 per share. For retail investors, the minimum investment required will be Rs 14,996.

The offering will comprise two components:

• Fresh equity shares worth Rs 6,846 crore
• An offer for sale (OFS) amounting to Rs 8,665 crore

As part of the OFS, the promoter Tata Sons will sell up to 23 crore shares, while International Finance Corporation (IFC) will divest 3.6 crore shares.

Financial Performance

Tata Capital has reported robust financial results, demonstrating strong growth:

The company's quarterly profit has more than doubled compared to the previous year. The annual revenue has also seen a substantial increase from Rs 18,175.00 crore to Rs 28,313.00 crore.

Use of Proceeds

The funds raised through the IPO will be utilized to strengthen Tata Capital's Tier-I capital base. This capital infusion is intended to support the company's future lending requirements and fuel its growth plans.

Listing Details

Post-IPO, Tata Capital's shares are slated to list on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). This listing will make Tata Capital the 17th company from the Tata Group to be publicly traded, further expanding the group's presence in the stock market.

The upcoming IPO of Tata Capital represents a significant event in India's financial sector, given the company's strong performance and its association with the renowned Tata brand.

Tata Capital, a prominent non-banking financial company (NBFC) under the Tata Group umbrella, has announced its much-anticipated Initial Public Offering (IPO) with a price band of Rs 310-326 per share. The public offering, valued at Rs 15,511 crore, is set to open on October 6 and close on October 8, marking a significant milestone for the company.

IPO Structure and Details

The IPO comprises two components:

1. A fresh issue of up to 21 crore equity shares, amounting to Rs 6,846 crore
2. An offer for sale of up to 26.6 crore equity shares, valued at Rs 8,665 crore

In the offer for sale:

• Tata Sons, the promoter, will divest up to 23 crore shares
• International Finance Corporation plans to sell up to 3.6 crore shares

Investors interested in participating in the IPO should note that the minimum bid requirement is set at 46 equity shares, which would cost Rs 14,996 at the upper price band.

Key Dates

• IPO Opening: October 6
• IPO Closing: October 8
• Share Allotment: October 9
• Listing on BSE and NSE: October 13

Utilization of Funds

Tata Capital intends to use the proceeds from the fresh issue to bolster its tier-I capital base. This strategic move aims to support future capital requirements and facilitate onward lending, positioning the company for continued growth in the financial services sector.

Recent Financial Performance

The company has reported impressive financial results in its most recent quarter:

These figures demonstrate substantial year-over-year growth, with profit more than doubling compared to the previous year.

Tata Group's Growing Public Portfolio

Upon successful listing, Tata Capital will become the 17th company from the Tata Group to be publicly traded. This move not only expands the group's presence in the public markets but also provides investors with an opportunity to participate in the growth of a major player in India's financial services sector.

The IPO of Tata Capital represents a significant event in the Indian financial market, offering both retail and institutional investors the chance to invest in a well-established NBFC with strong backing from the Tata Group.