Tata Capital Unveils IPO Plans, Offering Up to 475.8 Million Shares
Tata Capital, the Tata Group's financial services arm, has filed draft papers for its IPO. The offering includes a fresh issue of up to 210 million shares and an offer for sale of up to 265.80 million shares from existing shareholders. Tata Sons plans to sell up to 230 million shares, while IFC will offer up to 35.80 million shares. Proceeds from the fresh issue will be used for future capital requirements and onward lending activities. Kotak Mahindra Capital, BNP Paribas, and Citigroup Global Markets have been appointed as lead managers for the IPO.
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Tata Capital, the financial services arm of the Tata Group, has taken a significant step towards going public by filing draft papers for its initial public offering (IPO). The company's move marks a major development in India's financial services sector.
IPO Structure
The IPO structure comprises both fresh issuance of shares and an offer for sale by existing shareholders:
- Fresh Issue: Up to 210.00 million new shares
- Offer for Sale: Up to 265.80 million shares from existing shareholders
Selling Shareholders
Two major shareholders have proposed to sell their stakes:
- Tata Sons: Up to 230.00 million shares
- International Finance Corporation (IFC): Up to 35.80 million shares
Use of Proceeds
The funds raised from the fresh share issuance are earmarked for:
- Meeting future capital requirements
- Onward lending activities
Lead Managers
Tata Capital has appointed several prominent financial institutions as bookrunning lead managers for the IPO:
- Kotak Mahindra Capital
- BNP Paribas
- Citigroup Global Markets
This move by Tata Capital to go public is likely to attract significant attention from investors given the Tata Group's strong brand presence in India. The IPO will provide an opportunity for investors to participate in the growth of one of India's leading financial services companies.
As the IPO process unfolds, more details are expected to emerge regarding the pricing, timeline, and specific allocations for different categories of investors. Potential investors and market watchers will be keenly following developments related to this significant offering in India's capital markets.
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