Tata Capital is about to shake up the Stock Market, and the numbers aren’t just great, they are significant.
As per updated draft red herring prospectus filed in August, the Initial Public Offer will include 47.58 crore shares, together with a fresh issue of 21 crore equity shares and an offer for sale (OFS) of 26.58 crore shares. Supporter Tata Sons, which presently holds 88.6% of the company, will divest 23 crore shares, whereas the International Finance Corporation (IFC) strategies to sell 3.58 crore shares from its 1.8% stake.
In what’s shaping up to be one of India’s biggest IPOs in the financial services segment, Tata Capital is planning to go public during the last week of September, with a huge $2 billion (₹17,200 crore) worth of offering, surpassing the mutual IPO sizes of retail tech giants like Zomato, Paytm, and Nykaa.
For background:
• Zomato raised up ₹9,375 crore from its IPO,
• Paytm took in ₹18,300 crore with the help of Public Offer,
• Nykaa derived in at ₹5,352 crore through the offering.
Tata Capital’s IPO isn’t just large in number, however, it’s strategic, timely, and supported by a heritage brand.
Tata Capital IPO: What’s in the Offering?
The IPO comprises a fresh issue of 21 crore equity shares and an Offer for Sale (OFS) of 26.58 crore shares.
• Tata Sons (holding 88.6%) will divest 23 crore shares.
• International Finance Corporation (IFC) is cashing accessible 3.58 crore shares from its uncertain 1.8% stake.
The company is pointing out an enormous $11 billion valuation, with listing projected by September 30.
Tata Capital IPO: Where’s the Money Going?
Takings from the fresh issue will:
• Support Tata Capital’s Tier-1 capital base.
• Supply future lending and expansion.
Tata Group’s Second Wind through this IPO
This is the next major market entrance for the Tata Group in recent time, the first being Tata Technologies blockbuster IPO in November 2023, which brought stellar gains and carried fresh retail affection for the 150 years old corporation.
With Tata Capital inward bound the ring, all focus is on whether this IPO can contest or exceed that enthusiasm, and based on the demand now building, the answer looks like a yes.
If you haven’t participated in the previous rallies of Zomato, Paytm, or Nykaa, this may be another chance, or your first smart one.
Also Read: Snehaa Organics IPO Day 2 Oversubscribed: Should You Jump In, Check Details?
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
He is committed to entrenched data, facts, research, solutions, and a dedication to value-based journalism. He has covered trade tariff wars, international alliances, corporate policies, government initiatives, regulatory developments, along with micro- and macroeconomic shifts impacting global fiscal dynamics.
