Tata Capital Eyes July Debut: SEBI Nod Sets Stage for ₹17,200 Crore IPO Blitz

News Summary: Tata Capital, the financial services business of Tata Sons, is preparing for one of India's biggest IPOs in the financial space. The Securities and Commerce Board of India (SEBI) has cleared the company's confidential draft red herring prospectus (DRHP), setting the stage for a public filing and possible launch as early as July 2025. The IPO is a regulatory requirement for Tata Capital, which is one of the Reserve Bank of India's upper-layer NBFCs with a deadline to list by September 2025.

Regulatory Milestone:

SEBI cleared Tata Capital's initial ₹17,200 crore IPO submitted confidentially in April

The company is expected to file its Red Herring Prospectus (RHP) in early July

The IPO will be a new share issue and an offer for sale (OFS) by Tata Sons, which holds 93% at present

Financial Pulse:

Tata Capital unlisted shares have appreciated 13.5% in the last six months, trading at around ₹1,050 a share

The valuation of the company is set at almost ₹3.8 lakh crore

For FY25, Tata Capital has posted a net profit of ₹3,655 crore, up from ₹3,327 crore in FY24

The revenue stood at ₹28,313 crore from ₹18,175 crore year-on-year.

IPO Dynamics:

Structure and Function

The IPO will raise growth capital through fresh equity issuance

Tata Sons will partially delist its holding through OFS yet maintain majority control

The issue will meet RBI's mandate for top-layer NBFCs to list.

Market Impact:

The IPO will be one of the largest in India's financial services industry

It will likely generate keen institutional and retail investor appetite

The action is part of Tata Group's overall strategy to free value from across its portfolio

Next Steps:

Public filing of the RHP due in first week of July Roadshows and investor presentations will come next followed by the IPO window

Final price, lot size, and listing date to be revealed after RHP filing

Sources: The Economic Times, Financial Express, Business Today, Republic World, GoodReturns, MSN News