Tata Capital, the financial services arm of the Tata Group, has filed draft papers with the Securities and Exchange Board of India (SEBI) for a $2 billion initial public offering (IPO) through a confidential pre-filing route.
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The IPO is expected to be valued at around $11 billion, according to industry sources. The offering will comprise a fresh issue of equity shares along with an offer for sale (OFS) by certain existing shareholders. Tata Capital disclosed that the IPO will consist of 2.3 crore equity shares, with a face value of Rs 10 each.
In a filing with the stock exchanges, Tata Capital confirmed that it had submitted the Pre-filed Draft Red Herring Prospectus (DRHP) on April 4, 2025. This filing is part of the company’s preparation for its initial share sale under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.
Tata Sons, the holding company of Tata Capital, holds a dominant 92.83% stake in the financial services company. If the IPO proceeds successfully, it will mark one of the largest initial public offerings in India’s financial sector. It would also represent the Tata Group’s second public market debut, following the listing of Tata Technologies in November 2023.
This move is aligned with the Reserve Bank of India’s (RBI) directive, which mandates upper-layer non-banking finance companies (NBFCs) to list on the stock exchange within three years of being designated as such. Tata Capital was classified as an upper-layer NBFC in September 2022, and this IPO is in compliance with that mandate.
The confidential pre-filing route, which Tata Capital has chosen, is becoming an increasingly popular option for Indian companies. This route allows companies to withhold certain details in their draft prospectus until later stages, providing greater flexibility and reducing the pressure to go public. Unlike the traditional filing method, where IPOs must launch within 12 months of SEBI’s approval, the pre-filing route allows companies up to 18 months from SEBI’s final comments to proceed with the IPO.
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This strategic move reflects a growing trend among Indian firms,
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