Tata Capital IPO: Capital market regulator Securities and Exchange Board of India (Sebi) has approved the draft papers for the initial public offering (IPO) of Tata Capital, the non-banking financial company (NBFC) subsidiary of Tata Sons, a report said.

Sebi has cleared the NBFC’s draft papers for the public issue, which were filed through the confidential route, Economic Times reported, quoting two people familiar with the development.

It was earlier reported that the Tata Capital IPO DRHP was filed through the confidential route with the regulator on April 5.

With Sebi clearing the DRHP, the proposed ₹17,200-crore Tata Capital IPO moves a step closer to launch. Following Sebi’s approval, Tata Capital is expected to file an updated draft prospectus publicly on the regulator’s website before submitting the final red herring prospectus (RHP) ahead of the IPO launch.

The newspaper report also suggests the company could file the RHP in the first week of July.

Tata Capital IPO Details

Tata Capital IPO is poised to be one of the largest public issues in India’s financial services sector.

Tata Capital IPO will comprise a combination of a fresh issue of shares and an offer for sale (OFS) by Tata Sons, which currently holds a 93% stake in the NBFC.

Tata Group is targeting a valuation of up to $11 billion for its financial services division, Tata Capital, which may become India’s largest IPO this year, Bloomberg in its recent report report.

As per the Reserve Bank of India’s (RBI) framework, both Tata Sons and Tata Capital are classified as ‘upper-layer’ NBFCs, requiring them to list by September 2025. This classification entails stricter regulatory oversight and a mandatory public listing within three years.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.