SEBI Clears Tata Capital’s Confidential DRHP for ₹17,200 Crore IPO
21-June 2025
Tata Capital, a subsidiary of Tata Sons, is preparing to launch one of the largest IPOs in India’s financial sector, valued at ₹17,200 crore. The Securities and Exchange Board of India (SEBI) has approved the company's confidentially filed Draft Red Herring Prospectus (DRHP), according to The Economic Times—a major milestone in Tata Capital’s path to becoming a publicly listed company.
With SEBI’s clearance, Tata Capital is expected to make the draft public on SEBI’s website before filing the final Red Herring Prospectus (RHP), likely in the first week of July. While the company hasn’t issued an official response, this timeline suggests it's on track to meet regulatory obligations and market expectations.
IPO Structure and Regulatory Context
The upcoming IPO will consist of both a fresh issue of shares and an offer for sale (OFS) by Tata Sons, which holds 93% of Tata Capital. The company had filed its confidential DRHP on April 5.
As per RBI guidelines, Tata Capital and Tata Sons are categorized as “upper-layer” NBFCs, requiring them to list on the stock exchanges by September 2025. This classification, which includes 15 NBFCs selected for FY 2024–25, mandates stricter compliance and transparency standards. It also reflects the company’s alignment with high corporate governance norms and financial stability.
Strong Financial Performance Supports IPO Plans
Tata Capital’s pre-IPO momentum is backed by strong financials and rising investor interest:
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Unlisted Share Price: Approx. ₹1,050, up 13.5% in the last six months
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Estimated Valuation: Around ₹3.8 lakh crore
Q4 FY25 Highlights:
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Consolidated PAT: ₹1,000 crore (up 31% YoY from ₹765 crore)
Full-Year FY25 Performance:
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Profit After Tax: ₹3,655 crore (vs ₹3,327 crore in FY24)
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Total Revenue: ₹28,313 crore (up from ₹18,175 crore in FY24)
These results underscore Tata Capital’s strong growth across segments and operational efficiency, boosting investor confidence ahead of its IPO.
Looking Ahead
With SEBI’s approval in hand and robust financials backing the offering, Tata Capital is now well-positioned to launch what may be India’s biggest IPO of 2025. The dual structure of the offering, combined with mandatory listing requirements, is expected to attract strong interest from both institutional and retail investors.
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