Software provider Tata Group is preparing to bring another company IPO from salt. The size of this IPO is going to be more than Rs 15000 crore. This Tata company has submitted documents with SEBI. This Tata company is Tata Capital, which provides financial service.
According to the report of Money Control by the news money control published on Business Today, the non-banking financial service firm and Tata Sons assistant firm has submitted the paper through a confidantial pre-filing route to the market regulator SEBI.
How many shares will be released through IPO?
On 25 February, the board of Tata Capital approved the IPO plan. Through this IPO, 23 crore shares will be released through fresh issue. Equity will be released by the current share holders on the offer for sale. According to the vibrations, the IPO will be released on the basis of the condition of the stock market and regulatory clearance. Right now there is no clear date to bring an IPO.
Starting of these firms in Tata Capital
Till 31 March, Tata Sons had 92.83% share holding of Tata Capital Limited. It also has a share of Tata Group and companies and IFC. It was earlier reported that the Tata Capital would use the paper to finalize the paper by using the confidential pre-filing system and finally by the early March.
Help these banks for IPO
The company has made Kotak Mahindra Capital, City, JP Morgan, Axis Capital, Axis Capital, ICICI Securities, SBC Securities, IIFL Capital, BNP Paraibas (BNP PARIBAS), SBC Paraiba (BNP PARIBAS) for advisory assistance in the IPO preparation. HDFC has availed 10 investment banks including banks.
Why is this IPO of Tata coming?
The Tata Group has been taken by the Tata Group, in line with the RBI instruction, in which the top NBFC has been directed to be public within three years of the notification, which is scheduled by September 2025. Tata Capital Financial Services, which has now been merged with Tata Capital by January 2024, has been included in the regulatory list.
In addition, in June 2024, the Board of Directors of Tata Motors Limited (TML), Tata Capital Limited (TCL) and Tata Motors Finance (TMFL) has approved the merger of TCL with TMFL through NCLT arrangement scheme. As part of the merger agreement, TCL will release its equity share to TMFL shareholders, giving 4.7 percent stake in the joint unit with TML.
What does Crisil Ratings report say?
The Crisil Ratings report also said that Tata Sons has invested a total of Rs 6,097 crore in Tata Capital Limited in the last five financial years. This includes Rs 2,500 crore in FY 2019, Rs 1,000 crore in FY 2020, Rs 594 crore in FY 2023 and Rs 2,003 crore in FY 2024, which reflects the growing focus on the group’s debt business.
This decision has become the eighth major Indian firm to choose the confidential pre-filing route after Tata Capital, Tata Play, Oyo, Swigy, Vishal Mega Mart, CREDIL Financial Services, Indira IVF and Physicswacks.
(Note- Aaj Tak does not recommend any kind of investment. Take the help of your financial advisor before any investment.)