All eyes are on the Tata Capital IPO. This Tata Group company has to mandatorily list its shares on the stock exchanges by September 30, 2025. This is as per a Reserve Bank of India (RBI) directive that mandates that after being identified as an NBFC upper layer, the company needs to be listed within 3 years.
Tata Capital IPO: RBI directive
According to the RBI’s directives for NBFCs under the Governance Guidelines, an NBFC has to list within three years of identification as ‘NBFC-Upper Layer’. Disclosure requirements need to be put in place on the same lines as applicable to a listed company, even before the actual listing, as per the Board-approved policy of the NBFC.
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Failure to comply with this requirement could lead to regulatory action from the RBI, the nature of which Tata Capital cannot currently determine, and which could adversely impact its business, financial condition, results of operations, and cash flows.
Tata Capital: IPO details
Tata Capital IPO is a book-built issue of 475.82 million equity shares. However, the company is yet to determine the valuation to launch the IPO.
This offer includes both a fresh issue component and an Offer for Sale (OFS) by existing shareholders, such as promoter Tata Sons and investor selling shareholders like International Finance Corporation. The equity shares are proposed to be listed on the BSE and the National Stock Exchange of India (NSE).
Tata Capital IPO objectives
The primary objective of Tata Capital’s fundraise is to augment the company’s Tier-I capital base. This augmentation is intended to meet future capital requirements, including those arising from the growth of its business and for onward lending. This also ensures compliance with regulatory requirements on capital adequacy prescribed by the RBI from time to time, said the company in its DRHP.
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Tata Capital is the flagship financial services arm of the Tata group and an RBI-categorised Upper Layer NBFC.
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