Tata Capital’s $2 Billion IPO: A Landmark in India’s Financial Sector | Rits Capital by Rits capital - HTML preview
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IPO Structure and Timeline
The Tata Capital IPO is structured as a combination of a fresh equity issuance and an offer for sale (OFS) by existing shareholders, comprising a total of approximately 47.58 crore shares.
Fresh Issue: Up to 21 crore new shares to raise capital for business growth.
Offer for Sale (OFS): Up to 26.58 crore shares sold by existing investors.
Tata Sons, the promoter, plans to divest up to 23 crore shares.
IFC will sell 3.58 crore shares, marking a partial exit.
Currently, Tata Sons holds an 88.6% stake, while IFC owns about 1.8% before the OFS.
The capital raised from the fresh issue will primarily augment Tata Capital’s Tier-1 capital, strengthening its borrowing capacity and facilitating lending expansion, especially in infrastructure and cleantech segments.
The IPO is slated for launch in the first half of October 2025, following an extension granted by the Reserve Bank of India to meet its regulatory deadline. It also fulfills RBI’s mandate for NBFCs classified as upper-layer entities to be publicly listed within three years of designation (Tata Capital was classified as upper-layer in September 2022).