Tata Capital, the financial services arm of the Tata Group, is gearing up for its stock market debut. The board has approved its initial public offering (IPO) plans. This would be the second Tata Group IPO in two decades, following the successful listing of Tata Technologies in November 2023.
IPO Structure: Fresh issue and OFS
As per the Reuters report, Tata Capital’s public issue will consist of fresh issue of 23 crore equity shares, alongside OFS by existing shareholders.
Tata Sons, which currently holds a 93% stake in the company, is expected to remain a key stakeholder even after the listing.
Tata Capital serves as the holding entity for multiple financial businesses within the group. These include Tata Capital Financial Services, Tata Capital Housing Finance, and Tata Cleantech Capital. Moreover, for investment and advisory businesses such as Tata Securities, Tata Capital Singapore, and its private equity division.
Rights issue before IPO launch
Prior to the public offering, the Tata Capital’s board has approved a rights issue worth up to Rs 1,504 crore to existing shareholders.
