Tata Capital Seeks IPO via Confidential Pre-Filing

Tata Capital has filed for a $2 billion IPO using a confidential pre-filing method. This financial services firm, valued at around $11 billion, plans to list on the Indian stock exchange to meet RBI's requirements for upper-layer NBFCs. The offering includes fresh equity and an offer for sale.

Tata Group's financial wing, Tata Capital, is aiming to raise $2 billion via an initial public offering (IPO) using the growing trend of confidential pre-filing, according to recently filed draft papers with the Securities and Exchange Board of India (Sebi). The move positions the company at a valuation of approximately $11 billion.

The IPO plans to combine a new issue of equity shares with an offer for sale by existing shareholders. Tata Capital, classified by the RBI as an upper-layer non-banking finance company (NBFC), garnered Tata Sons' backing to proceed with this strategic listing. It aims to align with the RBI's regulations for NBFCs to list on stock exchanges within three years of categorization.

Following in the footsteps of other Indian companies, Tata Capital's confidential filing avoids immediate public disclosures in its draft red herring prospectus (DRHP), adding flexibility in timing and potentially adjusting IPO size. This tactic allows public offering completion within 18 months after final Sebi approval, as opposed to the traditional 12-month timeline.

(With inputs from agencies.)