Tata Capital is reported to file its updated draft red herring prospectus (DRHP) with the capital markets regulator Sebi for its upcoming initial public offering (IPO), according to NDTV Profit. The IPO of Tata Capital may include a fresh share sale of 21 crore equity shares and Tata sons and other shareholders will offload around 26.6 crore equity shares, the report adds.
The listing move is aimed at meeting the Reserve Bank of India’s requirement for all NBFCs classified as ‘upper layer’ to go public by September. NDTV Profit also reported that Tata Capital has received the nod from market watchdog Sebi for its confidential DRHP it had filed earlier.
Earlier this month, Tata Capital had rolled out its rights issue at Rs 343 apiece, which had opened on July 4. Tata Capital’s board announced to raise Rs 1,751.85 crore via rights issue by offering 5,10,74,292 equity shares at the given issue price on June 26. Tata group’s flagship NBFC arm is likely to utilise the proceeds to clean up its books post the amalgamation with Tata Motors Finance.
The unlisted shares of Tata Capital had a sharp correction in the pre-IPO market after the company raised funds at a steep discount. Unlisted shares of Tata Capital have tumbled more than 30 per cent from its peak around Rs 1,050-1,100 per share to Rs 750-800 apiece. The stock was seen around Rs 900 levels when the rights issue was announced.
Sandip Ginodia, CEO at Altius Investech said that one can not rule out more correction in Tata Capital’s stock in the unlisted market as IPO price band shall be modestly above the rights issue price. “The company is strong in terms of fundamentals and parentage, valuations need to second these factors, which is currently not the case for it,” he said.
In its run-up to the IPO, Tata Capital has been showing strong financial performance ahead of the IPO. Tata Capital’s net profit rose nearly 10 per cent on a year-on-year (YoY) basis to Rs 3,655 crore in FY25 from Rs 3,327 crore in FY24, while total revenues soared 56 per cent YoY to Rs 28,313 crore for the full financial year 2024-25 from Rs 18,175 crore in the previous year.
For the March 2025 quarter, the company reported a 31 per cent year-on-year (YoY) rise in consolidated net profit at Rs 1,000 crore from Rs 765 crore a year ago. Revenue from operations for the same quarter surged by 50 per cent to Rs 7,478 crore, compared to Rs 4,998 crore in the year-ago period.
According to the shareholding pattern of Tata Capital as of June 13, 2025, Tata Sons owned 88.58 per cent stake in the company, while other Tata Group entities owned 6.95 per cent stake. International Finance Corporation and individual investors held 1.80 per cent stake in the company each. It is looking to raise around $2 billion (Rs 17,200 crore) from primary markets.
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