Key Highlights:
- Tata Sons to sell 23 crore shares, IFC to offload 3.58 crore shares.
- IPO includes 21 crore fresh equity shares to boost Tier-I capital.
- IPO size estimated between Rs 13,371-Rs 17,200 crore.
Mumbai: In one of the most anticipated public offerings, Tata Capital Limited is moving closer to its IPO. As per the company’s draft red herring prospectus (DRHP), promoter group Tata Sons plans to offload up to 23 crore shares. Additionally, the International Finance Corporation (IFC) is set to sell 3.58 crore shares. The company is expected to file updated IPO papers soon, following regulatory approval from SEBI.
21 Crore Fresh Shares to Be Issued
Apart from the Offer for Sale (OFS) by Tata Sons and IFC, the IPO will include a fresh issue of up to 21 crore shares. Currently, Tata Sons holds an 88.6 percent stake in Tata Capital, while other Tata Group companies collectively own about 7 percent. IFC holds a 1.8 percent stake, equivalent to 7.16 crore shares.
Use of IPO Proceeds and Key Managers
Proceeds from the fresh issue will be used to strengthen Tata Capital’s Tier-I capital base and cover issue-related expenses. The company has not planned any pre-IPO placement. The book running lead managers for the issue include Kotak Mahindra Capital, Axis Capital, BNP Paribas, Citigroup Global Markets India, and HDFC Bank.
IPO Size Estimated at Rs 13,371–Rs 17,200 Crore
While unofficial estimates place the IPO size at around Rs 17,200 crore, reports suggest the size may reduce to approximately Rs 13,371 crore if shares are priced similar to Tata Capital’s March rights issue at Rs 281 apiece.
