Tata Capital IPO launch likely in October; all about the Rs 17000 crore public issue

New Delhi:  Tata Capital IPO, worth Rs 17000 crore, is likely to come up in the first half of October after the Reserve Bank of India (RBI) has given an extension to the company to list its shares on the stock exchanges, as per the people familiar with the matter.

Earlier, the public issue from Tata Capital, which is the much-anticipated IPO of this year, was given a September 30 timeline by the central bank to list its share on the stock exchanges.

"While the RBI had given a timeline of September 30, it has allowed for an extension due to procedural reasons," said people familiar with the matter, as quoted by PTI.

The company is eyeing USD 2 billion through its public offering and estimating the market valuation at USD 18 billion. This was a sharp jump from the USD 11 billion market valuation the company eyed in its previous attempt for public issue when it filed confidential IPO papers in April.

The Tata Capital IPO, which is worth Rs 17000 crore, is set to be the largest in the country after Hyundai Motor's IPO, worth Rs 27870 crore.

Market analysts noted that large IPOs often see many extensions before going public. For instance, NSDL's Rs 4000 crore- IPO was given an extension by over four months before going public in July.

The IPO comprises a fresh issue of shares of 21 crore and offer for sale (OFS) of 26.58 crores, thereby totaling 47.58 crores of shares as per the data obtained from the updated Draft Red Herring Prospectus (DRHP) filed in August.

The promoters of Tata Capital, i.e., Tata Sons, are set to offload 23 crore shares from the company. Additionally, the International Finance Corporation (IFC) will offload up to 3.58 crore shares. Currently, Tata Sons owns an 88.6 percent ownership stake in Tata Capital, whereas IFC owns a 1.8 percent stake.

The company plans to utilise the fresh proceeds from the public issue to augment tier 1 capital and facilitate more lending business. The IPO marks a Tata Group's second public offering after the successful listing of one of its subsidiaries, Tata Technologies in November 2023.

The IPO is being undertaken in line with the RBI's listing mandate for upper-layer NBFCs, which requires them to be listed within three years of classification. Tata Capital was designated as an upper-layer NBFC in September 2022.

In Q1FY26, the company boasts of strong results, reporting a net profit of Rs 1041 crore, doubling from the previous earnings of Rs 472 crore the company minted in the corresponding quarter a year ago.