IPO Corner: Another Tata Group company is set for its Dalal Street Debut

Tata Capital, an unlisted Tata Group enterprise, announced on Tuesday, February 25, that its board has approved the proposal for its Initial Public Offer (IPO).

Tata Capital's IPO will consist of a fresh issue of shares having a face value of ₹10 each, which will be worth ₹23 crore. The remaining portion will be an Offer for Sale (OFS) from certain existing and eligible shareholders.

The OFS size or who will be the selling shareholder in the IPO has not been disclosed yet.

The OFS will be subject to market conditions, receipt of applicable approvals, regulatory clearances and other relevant considerations, Tata Capital said in its filing.

Additionally, Tata Capital's board has also approved a rights issue worth ₹1,504 crore to existing shareholders. Record date for the rights issue has been fixed as February 25, 2025.

Tata Capital has not determined the rights issue price and or the entitlement ratio for the same.

Once completed, Tata Capital will become the first Tata Group company in over 15 months to make its stock market debut. The last one to do so was Tata Technologies in November 2023, which became the first IPO from the Tata Group stable after TCS two decades prior.

Tata Capital was recently added to the list of upper layer Non-Banking Financial Companies (NBFCs) by the Reserve Bank of India (RBI) for the year 2024-2025. It has to list by September 2025 to be compliant with the RBI regulations.