Tata Capital Board Approves IPO Plans and Rs 1,504-Crore Rights Issue

06-March 2025
The board of Tata Capital, the financial services subsidiary of the Tata Group, approved its listing and a rights issue of ₹1,504 crore on Tuesday.
The initial public offering (IPO) is expected to be approximately $2 billion (around ₹18,000 crore), as previously reported by ET. During the board meeting, the company approved the IPO, which will comprise a fresh issuance of 230 million shares along with an offer for sale by existing shareholders, according to its exchange filing.
The company informed the stock exchange that the listing is subject to market conditions and necessary regulatory approvals. The record date for the rights issue is February 25.
Tata Sons currently holds a 93% stake in Tata Capital. In December, ET reported that the company had initiated the IPO process and appointed Kotak Mahindra Bank as the investment banker.
In September 2022, the Reserve Bank of India classified Tata Capital’s subsidiary, Tata Capital Financial Services Ltd (TCFSL), as an upper-layer non-banking financial company (NBFC). This classification requires stricter regulatory compliance and a listing within three years. The deadline for listing is September 2025.
Effective January 1, 2024, TCFSL merged into Tata Capital Limited.
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