Tata Capital files confidential Draft Red Herring Prospectus for IPO, expected to be over ₹20,000 crore.
| Photo Credit:
Sagar Sojitra

Tata Capital has filed a pre-filed or confidential Draft Red Herring Prospectus for its forthcoming initial public offering, the company said in an exchange filing. The size of the offer was not mentioned but according to multiple sources it is expected to be over ₹20,000 crore.

In February, the non-banking finance company had taken board approval for an IPO, comprising an offer for sale and a fresh issue of up to 23 crore shares. The number of shares to be sold in the OFS was not mentioned.

While the stock markets have turned volatile, there is still appetite for high quality issuances. An investment banking source connected with the issue said with fewer companies approaching the equity markets, bigger issues such as that of Tata Capital would have a good reception from investors.

Tata Capital has a loan portfolio consisting of home mortgages, loans against property, personal loans, business, and corporate loans. Tata Sons, the holding company of the Tata group has a 93 per cent stake in it.

The non-banking lender was categorised as an upper layer NBFI by the Reserve Bank of India in 2022, and as such is subject to tighter regulations and closer supervision. It is also mandated to list its shares publicly by September 2025.

In the first nine months of FY25, Tata Capital reported a consolidated net profit of ₹2748 crore on total revenue of ₹17,301.5 crore. The comparable figures for the year-ago period was net profit of ₹2376 crore on revenue of ₹13177 crore.

Pre-filed or confidential filing allows companies to file for IPOs without making it public so that peer competitors cannot take advantage of sensitive information in the prospectus. The confidential filing also gives companies the flexibility to time their IPOs dependent on market conditions while protecting their business interests.

Published on April 5, 2025