New Delhi: Tata Capital is likely to launch its much-anticipated $2 billion (over Rs 17,000 crore) initial public offering (IPO) in the first half of October after the Reserve Bank of India (RBI) has granted an extension to list its shares on the bourses, according to people familiar with
the matter.
Earlier, the non-banking finance company was given a timeline of September 30 to list on the stock exchanges.
The company is eyeing $2 billion through its maiden public offering at a valuation of $18 billion. This was a sharp jump from the $11 billion valuation ascribed when Tata Capital filed confidential IPO papers in April.
Tata Capital’s offering would be the biggest in the country after Hyundai Motor India’s $3.3 billion (Rs 27,870 crore) IPO in October 2024.
“While the Reserve Bank of India had given a timeline of September 30, it has allowed for an extension due to procedural reasons,” people familiar with the matter said.
Market observers noted that large IPOs often see such extensions. For instance, NSDL’s Rs 4,000-crore IPO was given an extension from Sebi by over four months before the offering finally opening in July.
As per the updated Draft Red Herring Prospectus (DRHP) filed in August, the IPO will comprise a fresh issue of up to 21 crore equity shares and an offer for sale (OFS) of up to 26.58 crore shares, totalling 47.58 crore shares.
Promoter Tata Sons will divest up to 23 crore shares, while International Finance Corporation (IFC) will offload up to 3.58 crore shares.
Currently, Tata Sons owns 88.6 per cent of Tata Capital, with IFC holding 1.8 per cent.
Proceeds from the fresh issue will be deployed to augment Tier-I capital and fuel lending growth.
If successful, this IPO will become the largest public issue in India’s financial sector. It will also mark the Tata Group’s second public listing in recent years, following the debut of Tata Technologies in November 2023.